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Rapeseed market remains range bound

Date Added: 17/04/2015

By Owen Cligg, Trading Manager, United Oilseeds

Prices of UK rapeseed are remaining rangebound on old crop positions between £250 to £260 ex farm. Matif has shown good gains during the week, but ran in to selling on Wednesday and Thursday bringing it back to values at the beginning of the week. New crop values remain stuck at around £240.00 ex farm for harvest movement.

 Despite a perceived carryover of old crop rapeseed, old crop values remain at a reasonable premium to new crop (unlike the feed wheat market).  Since rapeoil values are fairly flat throughout the rest of the year this is impacting on crushing margins, so margins are particularly poor at present. This is leading crushers to operate on minimum stocks and only crush seed where they have sold products at a margin. On the continent, some crushers are switching in to soybeans which are proving more profitable to crush.

 Although fundamentals remain bearish on the oilseed market due to the increasing world soya stocks, some futures brokers point to bullish scenario on matif rapeseed from a technical view point. This in reality may have to do with a weak euro and farmer retention rather than the start of a bull market.

Regards,

 

Owen

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