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Markets ahead uncertain

Date Added: 22/05/2015

By Owen Cligg, Trading Manager, United Oilseeds

UK oilseed rape values have firmed on old crop positions as selling seems to have dried up. Typical values now range between £255 and £260 ex farm. Although it seemed there would be plenty of oilseed rape to go around in Europe, higher than expected crush levels have meant the quantity that was previously assumed to be available has already been crushed. This, coupled with a potentially later harvest, suggests crushers will need to slow down in order to maintain supplies. Interestingly, despite the uncertain outlook for biodiesel, biodiesel production within Europe significantly increased during the last calendar year. This can be mainly put down to imposition of duties on imports from Argentina and Indonesia.

As regards new crop, the higher currency with £1 = €1.404 is curtailing new crop prices at or below £240.00 per tonne. As this represents a price below the cost of production for many growers, new crop is remaining thinly traded. Large stocks of soya remain a potential bearish factor. However, frost damage in Canada and el nino conditions in SE Asia could yet prove supportive.

 

Regards,

 

Owen

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