Weather brings a shine to OSR and wheat is hopeful

Oilseed rape values rallied strongly this week as the first combines made their way into the UK crop.

The main reason for the hike was crop damage from hot weather in France.

This led to disappointing yields where harvest is under way in the regions south of Paris, pushing up new crop futures values.

Gleadell oilseeds trader Jonathan Lane said rapeseed prices on the French MATIF exchange had reversed their decline of recent weeks.

“August futures prices had dropped to €242/t three weeks ago, but have since recovered to €258.50/t.

November futures have traded at €263/t.”

Demand from European crushers remained strong and a firm crude oil market had kept up the continental biodiesel industry’s thirst for supplies, he added.

Some UK crusher business was still available for harvest, with £161/t ex-farm achievable in most areas of the country.

Most traders had pegged September prices at £163 or £164/t.

New crop feed wheat values were also subject to a traditional weather market this week.

As with oilseed rape, early reports of reduced yields in French crops had given UK futures a lift, said David Doyle, head of Grainfarmers’ wheat desk.

Dry weather in the USA and Australia had not been ideal, making for general optimism about world wheat prices, he added.

“The pre-harvest market is quite nervy.

Today (11 July) London futures climbed £1.60/t while the French MATIF market rose €2.5/t.”

As Farmers Weekly went to press, August feed wheat values ranged from £65-£71/t, depending on location.

For those wishing to hold on to crop, November prices of £71-£74/t were available in many areas, said Mr Doyle.

On the barley front, a lacklustre export market was keeping values under pressure, he added.

“French, German and eastern European barley is trading into southern European countries cheaper than UK barley, so the export potential looks limited at the moment.

“But the strength of new crop feed wheat could bring buyers into the barley market.”

The crop was worth £67-£68/t for November movement, he added.