Oilseed rape prices rise sharply as pound weakens against euro

Oilseed rape prices have risen sharply over the past week, buoyed by the weaker pound against the euro.

As Farmers Weekly went to press, spot rapeseed was worth about £271/t ex-farm – £7.50/t more than last week. New crop prices were similarly improved, at about £265/t for harvest movement.

Feed wheat prices were only about 50p firmer on the week as stocks remained ample, averaging £101/t ex-farm for spot movement and about £110/t for harvest.

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On Tuesday (5 April), the European Central Bank reported £1 to be worth €1.2475 – its lowest level since 8 September 2014. By Wednesday, the pound had dropped further, to €1.2390, pressured by slow economic growth and uncertainty over the looming EU referendum.

“The weaker sterling is supporting UK competitiveness into the eurozone,” said Helen Plant at the AHDB.

“While UK feed wheat (May-16) futures have fallen 9% since the start of 2016 to £106.45/t on 5 April, over the same period when converted into euros, UK values have declined by 16%.”

Potato prices had also improved, with the average up by £3.22/t to £188.32/t in the week to 1 April and the free-buy average up by £15.59/t to £202.18/t.

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