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USDA report uninspiring

Date Added: 15/08/2014

By Owen Cligg, Trading Manager, United Oilseeds

The USDA report on Tuesday proved uninspiring to rapeseed prices, as both corn and soyabean potential yields were raised continuing to fuel expectations of record crops. Matif rapeseed futures sold off following soyabeans, but physical prices have remained firm as growers remain reluctant sellers.

Whilst apparently the crusher has reasonable cover for August, the early harvest has left many merchants short for deliveries at the end of the month. Hence August is now well bid in England at around £235.00 ex farm, but carries going further forward have decreased to only £1.00/month. Exports are continuing out of Scotland but the base price is discounted to around £225.00 ex farm.

The latest Defra planting figures confirmed what we had long suspected, that the area of oilseed rape was not quite as high as others had thought. An area of 634,00 hectares for England which, extrapolated to 680,000 hectares for the UK, will reduce the production of oilseed rape to between 2.3 to 2.4 million tonnes.

This means a current estimate of actual and intended exports of around 300,000 tonnes may suggest there are only 150,000 tonnes of new export business required for the rest of the season.


Regards,

Owen

 

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