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Rapeseed Markets Remain Lacklustre

Date Added: 09/05/2014

Trader's View by Owen Cligg - United OilseedsTrading Manager

Oilseed rape prices are still on the defensive in quiet trade. The USDA report today has also failed to produce any fireworks with most numbers coming within expectations.

Old crop oilseed rape prices have fallen to no more than £300/tonne whilst new crop prices remain moribund in the region £265 ex farm for harvest movement. We are of the opinion the European farmer still has yet to come to market whilst the crusher remains mainly uncovered. Crush margins are poor on old crop and are only adequate for new crop so crushers are in no hurry to buy until they can lock in crush margins to their advantage. Large canola stocks in Canada and cheap oilseed rape potentially available from the Ukraine are bearish factors. However, if problems of supply from the Ukraine become apparent we expect the market to rise.

In the bigger picture, vegetable oil supplies will have a large effect on rapeseed prices so any restriction on soy oil and palm oil production such as an El Nino could be the trigger for higher rapeseed prices.



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