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Rapeseed market remains quiet

Date Added: 16/09/2016

By Owen Cligg, Trading Manager, United Oilseeds

The market started the week digesting the news from the USDA report that soya yields would likely be 50 bushels per acre, breaking all previous records. This caused soybeans to drop in price and put subsequent pressure on rapeseed prices. However, a lower rapeseed price, currently £300 to £307 ex farm has only discouraged sellers and made trade almost impossible as buyers are unwilling to pay the previous higher prices.

Both UK crushers are now committed to take some import  and their view is this allows them to stay out of the market in the short term.  Our opinion is that they do not realise the true deficit of UK crop with some exports still possible of HOLL and Scottish seed which will only tighten the balance sheet further. Hence prices could rally again, especially if support appears from a restricted rapeoil supply which will only force biodiesel producers to pay higher prices.

 

Regards,

 

Owen

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