By FWi staff
FOLLOWING the dramatic surge in UK rapeseed prices and increased farmer selling, UK rapeseed markets remained quiet with delivered prices inching back by 50p to £1.50/tonne in some areas.
The shorts that were keeping the market firm appear to have been covered , and those who were able to take advantage of the £160/t ex-farm that has been available during the last week must count it as a good sell, said a spokesman from Gleadell Banks.
UK crushers are finding it increasingly difficult to sell oil and, with the tight margins that they are suffering from this season, they are reluctant to pay higher prices for their domestic rapeseed, he said.
“However, we do not foresee any great moves in the market pre-Christmas, and if £160/t ex-farm becomes available again it may be wise to book it. With little interest in the FOB at present and the strength of Sterling there is currently little to push this market much higher.”
Despite more movement from farms over the past couple of weeks, trade sources indicated that as much as 30% of the UK rapeseed crop is still unsold. This would leave a total of 550,000 tonnes to market, noted a spokesman from the Home-Grown Cereals Authority.
US soya oil futures prices climbed to their highest level in 10 weeks towards the end of last week, on the back of weekly export data and increased fund buying. By the end of last week values in Chicago had risen as much as US$14/t (£8.54/t) on the previous week.
The HGCA has predicted that EU rapeseed prices should reflect this increase, and the Deutschmark price has already reacted, climbing DM2-4/t (£0.69-1.39/t) this week.