Rapeseed prices follow French futures into slump
By FWi Staff
UK rapeseed prices plummeted further this week, losing as much as £8/t on last weeks values. Traders blame this latest drop in prices on the slump in the Matif rapeseed futures.
UK ex-farm prices have fallen to about £149.00/t compared with £152/t a week ago.
Poor crush margins and a general feeling that the EU market was overpriced with the ample supplies seen this year triggered a slide in EU rapeseed prices. Over the week rapeseed values fell DM28, noted the Home-Grown Cereals Authority.
Turmoil in global economies has reduced export opportunities further, lessening the chance of an immediate recovery in prices.
Recent data published by MAFF show UK oilseed crushings at a record 2.6 million tonnes. Rapeseed crushings reached 1.6 million tonnes, a record quantity so far. Soyabean crushings at 760,000 tonnes remained at a similar level to 1996/97, while sunflower crushings were put at a five year low of less than 120,000 tonnes.
The anticipated record US soyabean harvest has been accelerated by good weather conditions this week. Fears over export prospects along with this bumper harvest has led to a drop in soyabean futures prices. This has led to further pressure on oilseed prices worldwide.