Switch to corn in US could support new crop oilseed values

Oilseed rape markets remain quiet, although a potential switch from soya bean plantings to corn in the US could prove supportive for new crop values.

In the week to Wednesday (29 April), spot rapeseed values were virtually unchanged at just over £254/t ex-farm, depending on location.

However, the first harvest prices, reflected in the table below, now range from £236-£240/t.

Weather conditions were still good for corn sowing in the US, encouraging farmers to increase the corn acreage at the expense of soya beans, said a report by analyst Agritel.

See also: More market prices and trends

“On Sunday, 19% of corn sowings were done compared with an expected 21% and to a five-year average of 25%.

Soya bean sowings only started on Sunday and have advanced by 2%.”

Also potentially supportive was a report that the Chinese soya bean area could drop by up to 15%, with the Canadian canola area set to fall by 4.5%.

“However, it is still the fourth largest canola area on record,” said a report by the HGCA.

“The big picture for oilseed markets remains unchanged with large soya bean crops in the Americas weighing on global prices and an expectation that US farmers will plant another big area in 2015.”