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Rapeseed prices stage a stuttering recovery

Date Added: 18/03/2016

By Owen Cligg, Trading Manager, United Oilseeds

Rapeseed prices staged a recovery this week as both sterling and the matif moved to add value to UK prices. Scottish prices remain underpinned at £250 ex farm as export enquiry continues, whilst English prices briefly touched £260 ex farm again in most areas when May matif rose to €257 euros and currency fell to £1=€1.2650 . However prices have now edged back, as the matif is back to €256 euros and currency stronger at £1=€1.2850. The weaker currency has also allowed some pricing of new crop contracts, so £255 ex farm was briefly available for harvest movement.

In the wider market picture, both soyabeans and palm oil have shown good gains this week. Soyabeans are trading around $9 a bushel as a weaker dollar and stronger real continue to favour US exports as opposed to new Brazilian business. Worries continue over palm oil yields and prices continue to trade at two year highs.

Regarding the rapseed outlook, although crush margins look better on paper, product sales of oil and meal are still difficult which is potentially reducing crush volumes.  On the positive side, there is still good export demand and we are still seeing movement in to the Baltic area, reversing trade flows of earlier in the crop year. A weakening currency, if Brexit fears persist, should help values going forward.

 Regards,

 

Owen

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