Oilseed rape price falls on currency and oil market pressure
© Tim Scrivener Oilseed rape prices fell by more than £9/t on the week, with sterling gaining against the euro and other oil and oilseed factors weighing on the market.
Regionally, spot prices are in a wide range, from £320/t ex-farm for November in North East Scotland, to £339/t in the North-West of England.
As in the grain markets, spot demand is strongest and further forward the price carry for oilseed rape is a maximum of £1/t a month. In some regions there is no carry for December and January.
See also: Britain’s oilseed rape area shrinks to 13-year low
Higher US soya yield estimates which put production at a record 118m tonnes, along with higher end-of-season stock projections from the US Department of Agriculture, have added to the pressure.
A slower economic growth outlook and lack of an Opec agreement to curb production pushed crude oil prices down this week, with a knock-on effect for oilseed crop values.
European farmer and agricultural co-op federation Copa/Cogeca raised its EU-28 oilseeds production forecast by 0.8% for 2017, to 31.2m tonnes this week.
In the UK however, the UK rapeseed area is estimated to be down 4% on 2016 and the lowest area for 13 years.
Bright spot
The one brighter price spot in the vegetable oils market this week was a rally in palm oil prices rally on news that October production and stocks were down 18% and 45%, respectively, year-on-year.
Feed barley prices largely held this week, while full spec milling wheat fell by about £4/t to average £139/t ex-farm for November, largely because of the strengthening pound.
Average ex-farm spot feed wheat values lost just over £1/t to settle at just over £130/t and in a range from £126.50/t in the South-East to £134/t in the North-East and North-West.