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Market thinly traded as prices stall

Date Added: 18/11/2016

By Owen Cligg, Trading Manager, United Oilseeds

UK rapeseed prices are currently at the low end of the recent range trading between £330 and £340 ex farm depending on area, ranging from Scotland to regions closer to the Liverpool/Erith mills.

Vegetable oil prices remain firm as palm oil stocks are not replenishing as fast as expected. UK rapeseed supplies are now in strong hands and there is an expectation significant imports may be required to meet demand. This is likely to be fulfilled by Panamax cargoes arriving from Australia to Liverpool or trans shipped material in to Erith.

Our expectations are that UK rapeseed harvested area could fall another 8% for 2017 harvest due to a combination of lower plantings and failed crops especially in the East.  Even a return to average yields will still mean imports will be required for the next marketing year as well. Hence prices should remain firm going forward, despite the spectre of increasing soyabean supplies from South America.

Regards,

 

Owen

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