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United Oilseeds Trader's View - by Owen Cligg

Date Added: 17/08/2012

Oilseed rape prices remain steady

Harvest of oilseed rape has progressed rapidly with the HGCA estimating 80% of the GB area has now been harvested. Yields are estimated at 3.4 to 3.6 tonnes per hectare, well down on last year's average of 3.9 tonnes per hectare. Exports are progressing quickly with a likely 250,000 tonnes due to leave the UK by the end of August. Our estimations would point to the exportable surplus being moved by November. Market prices for harvest ranged from £365.00 to £375.00 ex farm for this week.

Supplies of soya, rapeseed, maize and wheat seem likely to be restricted until at least February as an almost perfect storm of adverse weather conditions have affected the worlds 2012 harvest. Demand is therefore hand to mouth as consumers do not like the high prices. Our assumption is that higher food prices will be necessary in order that mills can pass higher commodity prices on to their customers. This should allow prices to continue to improve until the South American harvest arrives in the new year.

Regards

Owen

 

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