More gains for OSR
More gains for OSR
OILSEED rape continued to make gains earlier this week with prices returning to season highs.
Typical delivered values hit £120/t, the equivalent of £111-112/t ex-farm in many areas, £3-4/t up on the week.
Main reason is a rise in vegetable oil prices in Chicago, boosted by a slower than expected soyabean crush and higher monthly palm oil exports, says Jenny Cameron of the Home-Grown Cereals Authority.
Soyabean futures prices rose the equivalent of £1.28/t in Chicago last week, while soya oil climbed £4.46/t.
But demand from UK crushers has also helped, says Robert Kerr of Glencore Grain. "Crushers have tended to sit back from the market. Given that the UK cut its biggest crop ever – about 1.7m tonnes – last harvest, they have been waxing and waning all year. But more has probably been exported than they thought."
Although UK crushers have paid £120/t delivered on the spot market for German supplies, that has not capped forward prices, notes Mr Kerr. "You can get £123/t delivered for May."
But reports of improved US and South American crops may limit further gains, says Ms Cameron. Crushing margins are also under pressure, and there is plenty of oil in Europe.
With perhaps 15% of the UK rape crop still to sell, growers should not ignore the current highs, Mr Kerr advises.
New crop values have improved slightly on the rise, with "as available" supplies priced at £104-£106/t, and the November slot worth £109-£111/t. *