Prospects for the 2008 oilseed rape crop looks more positive than for wheat, according to farmer-owned marketing company United Oilseeds.
Managing director Chris Baldwin said old crop prices still had some way to climb and United Oilseeds had set a target price of £300/t for its 2008 harvest pool.
World stocks of oilseeds were declining and remaining EU carry-out stocks would continue to shrink, he said. This was coupled with strong worldwide markets for soya, palm oil and rapeseed oil.
“The wheat-rapeseed price difference has widened by 74% since drilling last autumn. There’s now a £160/t difference in rapeseed and wheat prices compared to £95/t. There are much bigger margins to be made on oilseed rape and that’s without oil bonuses worth £22-£23/t.”
The 2007 harvest yielded about 1.96m tonnes in the UK and the company estimated 2008 yields to be slightly less, despite the incentive offered by higher prices and land coming out of set-aside, Mr Baldwin said.
He also said the planted area was likely to fall slightly, but yields would rise after a difficult season last year.
- CBoT – Chicago Board of Trade.
- COCERAL – European oilseeds agrosupply trade organisation.
- FEDIOL – The EU oil and protein meal industry.
- HGCA – Home Grown Cereals Authority.
- MATIF – european futures exchange.
- NNFCC – National Non Food Crops Centre.
- Oil world
- USDA – Economics research service.
Oilseed Producer groups worldwide: