By FWi staff
UK RAPESEED prices remain firm this week, reflecting optimism in the market despite the low meal prices. Exports of rapeseed have improved, along with an increased demand for vegetable oils.
Recent trial results from the HGCA and NIAB show yields of treated winter oilseed rape 1t/ha below the four-year mean. However, industry insiders say that this is not likely to be repeated in commercial crops, although yields do appear to be lower than the 3.23t/ha averaged last year.
“Although crops are averaging a 10% reduction in yield this season, given the extra acreage planted we are likely to see a similar crop to last years in size” said Tim Desborough of Allied Grain in Diss, Norfolk. Germany has already seen an increase in 12 % on last years crop.
There is mounting concern for Chinas soyabean crop after widespread flooding, and there are reports that the country is issuing import licences for 200,000 tonnes of soya oil.
This would make China one of the main vegetable-oil purchasers this year, and could help in supporting the oil prices throughout 1988/99. However, this is still speculation and it is too early to say for certain what will happen in China, warned Mr Desborough.
In its monthly report, released last week, the US Department of Agriculture forecast a global 1998 soyabean crop unchanged at a high of 154m tonnes. Comparing country by country, there is little change from Julys forecasts. Although prices fell following the report, they gained support from the higher vegetable oil prices.