Further dip pushes oilseed rape down to 2010 prices

Oilseed rape markets have dropped sharply over the past week, as better weather should benefit soya bean yields in the USA.

Chicago soya bean and Malayasian palm oil prices all declined on the previous week, dragging domestic rapeseed markets with them. By Wednesday (31 July), UK rapeseed prices had dropped by more than £18/t, to an ex-farm average of £272.50/t for harvest – the lowest spot price since August 2010.

“Recent showers in the USA are favourable for soya bean yields, thereby reducing threats to the realisation of a bumper harvest,” said a report by HGCA. “There has been additional pressure due to poor demand as consumers delay purchases in the hope of low prices.”

Rapeseed prospects across the EU were favourable, with German production set to recover from 4.8m tonnes to about 6m tonnes. And although the French crop was likely to drop by almost 19% on last year, to 4.4m tonnes, Ukraine was expected to double its rapeseed exports to 2.1m tonnes following a 75% rise in production, it added.

Feed wheat and barley markets also eased as fears about the US maize crop condition subsided. “The timing of the US maize harvest will be especially important, with very tight old-crop supplies.”

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