Rape price down again after last weeks blip
By Olivia Cooper
RAPE prices have weakened this week after a short-lived jump in value.
Prices leapt last week on the back of a firmer world oil market and a lack of farmer selling in the UK.
India, the worlds largest edible oil importer, cut its base import price of crude palm oil by US$49/t (34/t), and Malaysian palm oil (MPO) futures firmed $6/t (4/t) in response. UK prices shot up by 3/t overnight.
Closer to home, COCERAL cut its EU rape production estimate by 100,000t, while Defra predicted that low yields have more than offset the 10% increase in rape area.
UK rape reached 150/t ex-farm, which encouraged many farmers to sell, says trader Steve Harrison of Grainfarmers.
But the gains were quickly eroded, as news of poor MPO exports and higher production in India reached the market.
Losses were compounded on Friday (12 October), when the monthly US Department of Agriculture figures raised estimated world soyabean production by an unexpected 5.2m tonnes.
Predictions of record soya plantings in Brazil and Argentina added to the negative tone, and Chicago futures fell sharply.
The UK market has followed suit, dropping back to about 145/t ex-farm.
Meanwhile, pulse prices have weakened, in line with Chicago movements and poor export demand.
Beans have fallen by 5/t in the past fortnight, to about 85/t ex-farm. But a trader for Allied Grain expects prices to fall further.
“There is no demand at the moment, but we have a surplus to get rid of, so prices will have to come down to stimulate buying interest.”
Quality is below last year, and he believes many farmers are storing beans and peas in the hope of achieving a premium later in the season.
“But quality is marginal, and with only a limited demand for even the best pulses, the only home left is the feed bin.”
Best quality Victor beans are worth 10/t premium, while large blue peas are fetching 7-12/t above the feed base of 87-88/t.
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