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Rapeseed prices still edging upwards

Date Added: 16/10/2015

 UK rapeseed prices have shown good gains over the last 2 weeks, with spot ex farm prices ranging from £255 to £260 ex farm depending on area. Matif prices briefly touched levels above €380 which have not been seen since before harvest. However, at time of writing, they are now €377  This, combined with a relatively weaker sterling, £1 = €1.36 has given UK values a much needed boost.

The USDA report of last week provided little news on US soya, by reducing harvested area whilst maintaining yield. Support is provided by good demand, especially China, which is stepping up US purchases despite a very slow start. November Chicago soybeans are now at recent month highs, holding above the psychologically-important $9 a bushel.

European rapeseed markets remain quiet, as crushers continue their spot buying policy. Crush margins are barely adequate in the spot position, whilst further forward much less profitable. The market is therefore more reliant on spot rapeoil demand mainly from biodiesel producers as they too cover only their immediate needs. This is borne out by the need for crushers to sell rapemeal in the spot position at anything up to a £10 discount to the Nov-April position as the rapeoil price covers most of the required crush margin.

 

Regards,

 

Owen

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