Support for oilseeds as delivered prices return above £400/t

UK oilseeds markets have looked slightly more bullish this week, with prices rising by £12/t on the week.

This has been driven by increased global demand for soya beans and cuts to South American production.

Delivered oilseeds prices rose back above £400/t on Tuesday, with prices quoted at £403/t in Erith, Kent and £407/t in Liverpool.

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Ex-farm oilseed rape spot prices collected by Farmers Weekly averaged £379.5/t on 19 April.

The latest US Department of Agriculture figures for April point to lower production estimates in Argentina and Uruguay. However, this was partly offset by higher production estimates for Brazil.

Increased trade between Australia and China is likely to return following talks.

Grower-owned co-op and marketing specialist United Oilseeds says that, if China seeks to increase trade links with Australia, this could potentially lead to an increase in oilseed shipments from Australia to China, which would likely reduce availability of imports into Europe.

Crude oil

Improved demand for crude oil is also offering some support to markets. Brent crude stood at US$83/barrel (£67/barrel) on 19 April, after falling to below US$75/barrel (£60/barrel) in March.

Paris rapeseed futures opened at €473.75/t (£416.9/t) for the May 2023 contract on 19 April, up by €16.75/t (£14.74/t) on the previous week.

AHDB lead analyst Millie Askew said this was due to strong crushing demand for US soya beans and upticks in palm oil prices, boosting oilseeds markets.

In the longer term, AHDB forecasts that ample supplies in Europe will put pressure on prices, with weather across the continent remaining a watchpoint.