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Prices set back on lower Matif & stronger currency

Date Added: 24/02/2017

By Owen Cligg, Trading Manager, United Oilseeds

UK rapeseed prices have edged back to around £345.00 ex farm for the spot position in thin trade as both buyers and sellers are showing little interest. A lower Matif and stronger currency at £1 = €1.18 have both reduced mill values, which despite being lower are still relatively expensive to rapeoil and rapemeal values.

US soya values have been under pressure due to the large Brazilian crop that is being harvested and the  spectre of an increased US soya area to be planted in the spring.  Palm oil prices have also been under pressure - commentators expect an increase in palm yields in the next few months as the effect of the previous el nino have finally worn off.

New crop rapeseed prices are correspondingly down to around £310.00 ex farm. EU OSR production is estimated to be up next season on a return to average yields. However, there are still concerns regarding UK and French surviving areas.

Vegetable oil stocks remain tight and we would not be surprised to see a new rally in prices, which may yet give us another return to the upside and renewed confidence for growers and processers. UK crushers would certainly like to see an increase in plantings and if this encouraged by better prices and returns to growers, all the better.

Regards,

Owen

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