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Old crop/new crop spread narrows on matif expiry

Date Added: 29/04/2016

By Owen Cligg, Trading Manager, United Oilseeds

May oilseed rape futures are expiring today, and currently trading at a €1discount to the August position. May seems to be discounted as stocks of oilseed rape are likely to be higher than previously thought in Europe, mainly due to a slowing of the crush due to poor crush margins.  Old crop values are now at £270 ex in England, whilst down to £260 ex in Scotland as the export program comes to an end.

New crop values have appreciated again as soya prices continue to be well bid on the perception of lower yields in Argentina.  Although the weather is now drying up, there still would appear to be serious issues with waterlogged fields and availability of gas for drying.  Rapeseed values are in a range of £260 to £270 ex for harvest movement, depending distance from the crush or port.

Prices are likely to be volatile in the short term as weather markets and Brexit concerns continue to impact.

 

Regards,

 

Owen

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