Harvest oilseed rape prices slump to £235/t

Oilseed rape prices have slumped again, driven lower by bearish reports in the USA and EU.

Harvest rapeseed values fell from around £243/t ex-farm last week to about £235/t on Wednesday 
(9 July).

“Concern over the tightness of US soya bean stocks has been the main factor providing support to oilseed prices against an otherwise bearish backdrop,” said a report by HGCA. However, the USDA’s quarterly stocks report revealed higher-than-expected stocks, causing soya bean markets to drop sharply.

“Furthermore, a record soya bean area has been planted which, at 34.33m hectares, was more than 1m hectares higher than expected.” With good conditions in the US Corn Belt, soya bean crops were looking the best for 20 years, with 72% rated good to excellent.

In France, the rapeseed harvest was under way and initial yields were pointing to a bumper crop of 5.2m tonnes – 19% up on last year, said the report.

Strategie Grains had revised its forecast for EU rapeseed production, putting it 0.7m tonnes higher to a record 22.5m tonnes.

The only bullish factor for markets was flooding in Saskatchewan and Manitoba in Canada, which had damaged old crop stocks and new crop plantings. “The extent of the damage will not be known until the flooding recedes.”