OSR values hold up as shortage is rumoured

By FWi staff

UK rapeseed values have remained stable this week, maintaining their recent gains as talk of a possible shortage during the final weeks of the season is discussed within the trade.

Ex-farm spot prices have stayed at about £130/t, with May deliveries at a stagnant £137/t. Harvest deliveries have firmed slightly at £127/t.

These higher prices have reduced crush margins over the past few weeks and crushers, although short of seed, are reported to be reluctant buyers of the domestic product, noted the Home-Grown Cereals Authority.

There is no doubt that UK crushers have yet to take on more cover for May and June. But it looks as if they have turned their attention to France, importing 2500t in the last week for delivery to a British crusher.

This was at a price which is effectively about £4/t over the UK delivered market, claimed a spokesman from Banks Agriculture.

“The crusher justified this by saying that it is worth it to him due to the cost savings of buying in bulk and not in small parcels,” he added.

But the remaining availability of French old-crop seed is uncertain due to the high rate of crushing at the start of the season, which is thought to have used a large proportion of the 1998 French crop.

However, it is worth remembering that the French rapeseed harvest is usually two or three weeks ahead of the UKs, and producers will be keen to clear any remaining old crop out of stores.

UK growers still holding old-crop rapeseed on-farm now have about six weeks in which to market their crops before the crushing plants close at the end of the season.