OSR bounces back as tax fears ease

European rapeseed markets recovered this week as fears that the new German government would scrap tax concessions on biodiesel production were calmed.

The rumours caused Continental futures to lose 10/t last week, with domestic values falling by 6-9/t.

But the German oilseeds industry association UFOP said this week that it had received assurances that biofuel production was safe.

European and UK prices were buoyed by the news, recovering to about 138/t as Farmers Weekly went to press.

A UFOP spokesman told news agency Reuters that duty would only be levied on blending conventional fuel and biofuels.

Centaur Grain’s oilseeds manager John Thorpe said sales had fallen “like a ski slope” and although there had been some recovery, January futures on the French MATIF exchange were still below recent highs.

“Most people have cover and there is very little trade, so rapeseed is still discounted this side of Christmas,” he said.

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