Oilseed rape prices have hit £500/t ex-farm, after a reduction in crop estimates in Canada. Prices collected by Farmers Weekly midweek averaged £506/t ex-farm for September – up by almost £14/t on the week and ranging from £496/t-£512/t around the regions.
Meanwhile, on Wednesday (22 September) United Oilseeds reported a daily increase of £2/t across the UK for delivered rapeseed.
Prices for September 2021 ranged from £509/t in Inverness, where values tend to be lower than at other locations, to £524/t in Erith and Liverpool.
Traders at the growers’ co-op said there were multiple positive market drivers supporting the crop’s values, including tight supply and demand in the EU, an increase in vegetable oil use in China and India, a reduction in crude oil production, and a rise in palm oil blending for biodiesel in Indonesia and Malaysia.
In addition, the EU’s lower OSR 2021 production of 17m tonnes and Canada’s reduced canola crop estimate of 12.78m tonnes (down 6.7m tonnes from 2020-21) due to drought damage have had an effect.
Will Ringrose, ADM Agriculture’s head of oilseeds, said Statistics Canada’s latest forecast – of the lowest crop since 2008 – which was adjusted following new yield models using satellite imagery, had shocked the trade and driven the market up.
Paris rapeseed futures (November 21) gained €30/t (£25.80/t) last week, closing on Friday 17 September at €600.75/t (£516.69), a new contract high and feeding the UK price.
Brexit-related issues such as exports slowing down on certain commodities, combined with a larger Brazilian and Argentinian 2021-22 soya bean crop of 196m tonnes, and the news that US farmers are set to drill a bigger area of soya beans, could balance the market and see prices start to reduce.