Oilseed rape price continues to rise

By FWi staff

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, largely because of a rise in vegetable oil.

Chicago prices were boosted by a slower than expected soyabean crush and higher monthly palm oil exports, said 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, said HGCA analyst Jenny Cameron.

Crushers have paid £120/t delivered on the spot market for German supplies but that has not capped forward prices, said Robert Kerr of Glencore Grain.

Reports of improved US and South American crops may limit further gains. 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, said Mr Kerr.

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.