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Prices lower, mainly on currency

Date Added: 30/10/2015

By Owen Cligg, Trading Manager

Rapeseed prices have fallen back this week with ex farm values at around £255.00 ex for November in most areas of England, and £250.00 ex to meet vessels in Scotland. The comments of the US Federal Reserve to indicate that interest rates may rise early in the New Year strengthened the dollar and weakened the euro. The pound subsequently rose against the euro and is currently approaching £1= 1.40 euros. Export prices are therefore less likely to calculate and the market remains thinly traded.

The strong dollar is also partly pressurising soyabean prices which have dipped to $8.80 despite a recent pick up in export sales to China. Another factor supporting soyabeans is the demand for vegetable oils of which Chinese and Indian imports are brisk. El nino continues to be talked about and a haze affecting Indonesia and Malaysia could reduce palm oil yields.

With regards to prospects for 2016 harvest, our preliminary survey results are showing that the UK rapeseed area could be more than 10% down. If this trend is also mirrored in Europe and Ukraine this should be supportive for prices going forward.

Regards,

Owen

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