Producers hold back as OSR sticks at 100/t
By FWi staff
WITH new-crop rapeseed sticking at about £100/t, producers continue to stay out of the market and get on with harvesting.
The low harvest values continue to prevent many growers from selling their rapeseed, holding on to take advantage of the currently higher forward prices, noted the Home-Grown Cereals Authority.
Rapeseed values have seen little change over the week, remaining under £100/t in some regions.
Forward prices have inched up under the influence of world markets, with September deliveries at about £112/t and October at £118/t.
More rapeseed is expected to come forward when the wheat harvest starts in earnest and storage space becomes limited.
Harvesting is proceeding well, with an estimated 20% of the crop now cut. This compares with just 5% a week ago.
But yields are highly variable, ranging from as low as 2.5t/ha (1.0t/acre) to 4.5t/ha (1.8t/acre), noted Cargills Ian Wallis.
“Ad-mix has also caused a few concerns, and producers are warned to keep a close eye on this to avoid any problems on delivery,” he added.
A spokesman from Glencore Grain Ltd agreed, adding that some recent results have produced some disappointing yields.
European rapeseed prices have also remained under pressure this week as the Euro strengthened against the Dollar, bringing values down to try and remain competitive.
However, the fall was limited as the Chicago soya futures market soared. Hot, dry weather in the USA is causing concerns that the yield of this seasons crop could be reduced.