Dry weather across Europe adds support to UK oilseeds markets

Paris rapeseed futures approached €500/t (£419/t) for the November contract on 27 May, the highest level in nearly three months.

In the UK, oilseed rape prices stood at £452/t for June delivery to Liverpool, while the average price for August delivery was £418/t.

The ongoing risk of dryness in Europe and weather concerns for Australian and Ukrainian crops have provided market support, according to crop marketing platform Hectare Trading.

The platform had listed buyers looking for oilseed rape delivered to Aberdeen at £470/t for May and June.

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Dry weather has caused concern in parts of Europe, according to the EU’s Mars crop survey, as soil moisture levels have dropped to critically low levels.

The report said severe water deficit in north-western Europe had challenged farmers and put crop yields at risk.

However, yield expectations for EU rapeseed remain roughly in line with last year overall at 3.17t/ha.

Looking ahead to harvest 2025, the AHDB’s latest estimates expect total rapeseed production to fall again this harvest, unless there are particularly good yields.

Based on five-year average yields and the current cropping area, the UK is set to produce about 765,000t of rapeseed this harvest, down from 824,000t last year, and 1.2m tonnes in 2023.

James Needham, oilseed product head at Frontier Agriculture, said:

“Rapeseed prices have been slowly increasing over the last week as an anticipated recovery in global production levels may not be as large as initially expected.

“In several key production areas, notably Canada, Australia and Ukraine, planted areas have been lower than expected due to weather conditions, which could lower output by approximately 1m tonnes between the three countries.”

However, he added that global production levels should still be higher than the 2024-25 season.

Europe saw a strong rebound in planted levels combined with supportive weather during the early growing season, which should help yields.

“In the UK, recent rains have given rapeseed crops a boost at the perfect time with a fair growing season up until recent dry conditions, which were just starting to have potential yield impacts,” Mr Needham noted.

Global markets

Paris rapeseed futures have received some support in recent weeks and the November 2025 contract peaked at €497/t (£417/t) on 27 May, up by €32/t (£27/t) since the start of the month.

However, traders at ADM say European markets remain “choppy”, with the main focus on yields, adding that the dry weather was creating some concerns for yields in northern Europe and into Ukraine.

The US Department for Agriculture recently forecast global oilseed production at 692m tonnes, up by almost 15m tonnes on 2024-25.

UK oilseeds sector

Rapeseed production is set to be at its lowest level for more than 40 years this harvest. 

Farmers’ co-operative United Oilseeds has continued to push its OSR reboot campaign, which aims to encourage more growers to consider the crop.

United Oilseeds has urged policy-makers to include oilseed rape in the Sustainable Farming Incentive, so growers can receive payments for including it in their rotation.

It said: “Rebuilding OSR is not just about yield, it’s about supporting bees, biodiversity, and a more balanced farming system.”