By FWi staff
FARMERS remain reluctant to sell any oilseed rape despite a further rise in values this week. But traders warn that these prices are not sustainable.
The oilseed rape market has risen on the back of weather markets in the USA and firmer oil prices, said Kevin Bantick of Dalgety Arable.
The continuing hot weather in North America has led to concerns for the soya crop, while a poor groundnut harvest in India could lead to possible imports of palm oil from Malaysia.
Ex-farm values for September have risen more than £2 over the week to about £110/t, while spot values inched up to about £105/t.
But Mr Bantick warned that this increase would not be sustainable and the chances of values increasing were non-existent. “The overall market is bearish.”
High yields in Canada and Australia, along with good harvests in Europe, indicate ample supplies on top of the high carry-over stocks from last year.
Despite the higher values on offer, farmers are still only selling what they have to. “Its quite remarkable how much theyre storing,” said Mr Bantick.
And with farmers not actively selling, the crushers might have to look at imports, he said. “As long as the margins right, theyll buy from anywhere.”
Peter Daubly of BDR Agriculture agreed that farmers were reluctant to sell. “They have a lot of harvest to do and dont want to hear any prices at all.”
Prices are still low compared to other years and farmers will only sell when they have to, he added.
- Rain could still save US soya harvest, FWi, 13 August, 1999
- Price rise fails to tempt OSR out of store, FWi, 10 August, 1999