Oilseed rape prices fell by about £7/t in the week to Friday (30 October), pushed down by falling oil prices which, in turn, pressured European rapeseed futures markets.
Regional spot prices collected by Farmers Weekly on Friday averaged £338.53/t ex-farm and ranged from £328/t in north-east Scotland to £344/t in Kent and Sussex.
Oil prices have slumped below $36/barrel (£27) on stock numbers released last week that were far higher than the market had expected.
Growing fears in that market about the scale of the effects of the coronavirus pandemic on demand have also added to the recent pressure across both crude and vegetable oil markets.
Despite the UK having a large deficit in oilseed rape production compared with the size of the domestic crush, prices are currently heavily influenced by the cost of imports.
Currency is also a main driver of prices, with increased volatility expected in the short term as market sentiment on Brexit negotiations switches between opposing outlooks.
Harvest 2021 values are at about £330/t ex-farm depending on haulage, said United Oilseeds in its Friday (30 October) market report, which also highlighted crop reports from the EU Commission’s MARS study.
This showed that planting in Romania, Bulgaria, and the Ukraine has been hampered as dry summer conditions continued into September.
However, Germany, Poland, Denmark and the Baltics have had a good start and may increase the area slightly, which will compensate the other areas.