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Commodity sell-off dents rapeseed prices

Date Added: 26/02/2016

By Owen Cligg, Trading Manager, United Oilseeds Marketing

 Rapeseed prices have fallen this week despite a weaker sterling. May matif has fallen back to 12 month lows below €250, whilst May Chicago soybeans look likely to test the recent lows of $8.50 per bushel. Also Winnipeg canola has exhibited steep losses as China has changed its contract specifications for rapeseed imports. The maximum admixture has been lowered from 2.0/2.5% down to 1.0%, which makes achieving contract specification more problematical.

A recent increase in gasoil prices following Brent crude is likely to be supporting rapeseed prices to a limited extent, as growers seem reluctant sellers.

 Old crop UK rapeseed prices are now valued at £250 ex to £260 depending on area and movement period. Harvest price are holding up well with £250 ex farm available in most areas.

 Commodity markets generally seem over supplied, which suggests any rallies will be sold in to. Any significant rise in prices will be no doubt require a weather event to occur that will impact on production.


Regards,


Owen

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