Oilseed rape prices rise as value of the pound falls
© Tim Scrivener Oilseed rape prices are continuing to rise and appear to be cushioned by the weak pound from falling prices on the continent.
Prices remained firm in the week to 2 November, rising £0.20/t to average £343.80/t ex-farm for spot movement.
Regional variations in price ranged from £340/t in Northumberland and the Borders, to £350/t in Essex and Hertfordshire.
Despite Euronext rapeseed futures falling sharply on Tuesday, UK markets appeared to be cushioned from the effects, likely due to the weakness of sterling.
See also: Market prices and trends
US soya bean production had been revised up further, adding pressure to the global oilseed markets, according to a report by AHDB Cereals and Oilseeds.
Analyst FC Stone estimated the 2016 US soya bean crop at 119.4m tonnes in November, up 0.8m tonnes on October and more than 3m tonnes higher than the US Department of Agriculture’s estimate.
Crude oil prices had also fallen sharply, weighing on soya oil and palm oil values, while the US soya bean harvest continued 2% ahead of the five-year average at 87%
complete, further suppressing global prices. Traders were also concerned ahead of the US election, said a report by analyst Agritel.
On the upside, conditions in Canada continued to support rapeseed prices, as recent snows had left soils wet and crops lodged. This delayed harvest, with 80% cut compared with the average of 99%.