Oilseed rape prices have improved, following a bullish report by the US Department of Agriculture.
It slashed its estimate of US oilseed production by 4.7m tonnes, due to lower than expected soya yields and a smaller harvested area. As of 11 August, 64% of the crop was classified as good to excellent, but development remained behind last year, with 58% of the crop setting pods, compared to 81% last year and a five-year average of 68%.
The USDA also cut its estimate of global soya bean stocks by 1.9m tonnes, to 72.3m tonnes. Despite larger rapeseed crops adding 200,000t to global oilseed production, US soya bean futures rose sharply in response to the report – and global markets followed.
As Farmers Weekly went to press, domestic rapeseed prices were pegged at about £278/t ex-farm for harvest – £5/t up on the week. Paris rapeseed futures were €10/t firmer on the week, at €366.25/t for November, but the strong pound had limited domestic gains somewhat.
In stark contrast, the USDA report proved bearish for UK wheat and barley markets, which ended the week down by £7-8/t, at about £143/t and £128/t for harvest movement, respectively. Milling wheat values followed suit, settling at about £155/t on Wednesday.