OSR prices rise as crop forecast cut

Global rapeseed production is forecast to fall for the first time in eight years, according to Oilworld’s latest report.


Smaller crops in the EU, China and Ukraine were likely to cut production by 730,000t, year-on-year, to 59.2m tonnes, it said. European rapeseed markets jumped by €10/t in reaction to the news, boosting British values to about £250/t ex-farm for harvest.

Meanwhile, grain markets were boosted when the US Department of Agriculture’s latest global forecast slashed maize stocks by 3.6m tonnes, following a sharp increase in ethanol production. It pegged 2009/10 ending stocks at 143m tonnes – 4m tonnes down on 2008/09. World wheat production was cut by 3.7m tonnes to 668m tonnes in 2010/11, with EU production down by 2m tonnes to 143m tonnes.

Concerns over the Canadian wheat crop added further support to markets, with record rainfall resulting in the lowest planted area for 40 years. But recent rain has aided EU crops, and barley harvest is now under way in southern Spain.

Combined with the stronger pound, London’s November futures remained unchanged in the week to Tuesday (15 June), at £101.75/t. However, continued demand for old crop exports to Asia has boosted spot prices to around £97/t ex-farm, depending on location.

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Futures markets and commodity risk management online course:

  • Risk management strategies for a more predictable financial performance
  • Educated conversations when collaborating with your advisors
  • Negotiate better prices with your grain merchants

View course

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