Oilseed rape prices’ dramatic downturn

Spot oilseed rape prices have crashed over the past week, dropping about £40/t on the back of strong European yields, good US weather, and weaker crude oil prices.

With combines rolling across the southern part of the UK, traders are forecasting a 5-10% increase in domestic production. That, combined with weaker EU and US markets, has forced prices down to about £287/t ex-farm for July/August movement.

But there was scope for prices to manage some recovery if farmers avoided marketing large tonnages for harvest movement, said United Oilseeds’ Chris Baldwin.