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Rapeseed prices follow crude oil down

Date Added: 28/11/2014

By Owen Cligg, Trading Manager, United Oilseeds

 

Rapeseed prices have fallen back this week following the recent fall in crude oil prices. Ex farm values in most areas of England are still valued at around £250.00 ex farm for December. Interestingly, soyabeans are maintaining their recent strength as being a protein rich oilseed, its price is less sensitive to any fluctuations in oil prices.

However, it can also be argued that since biofuel inclusion in the EU is still mainly mandated, biodiesel demand should not necessarily be detrimentally affected by the oil price drop. Our opinion is that the recent fall is more sentiment and rapeoil demand will remain buoyant going forward.

United Oilseeds survey for 2014 plantings was announced yesterday indicating a drop of 10.55% in area, which subsequently equate to an UK rapeseed harvest of about 2.1 million tonnes. This will reduce the potential exportable surplus and should support UK prices relative to other European values.

Regards,

Owen

 

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