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Volatile OSR market is thinly traded

Date Added: 13/10/2017

By Owen Cligg, Tradimng Manager, United Oilseeds

UK rapeseed prices have shown a great deal of volatility this week as movements in Sterling and Matif are causing wild fluctuations in prices.  Matif was originally under pressure as the November position approaches expiry and there would seem to be an excess of spot supply on the European export market.

However, a bullish USDA report on Thursday reduced soya yields from 49.9 lbs/bushel to 49.5 lbs/bushel so Matif reversed and prices recovered.  Conversely Sterling has shown an equally volatile period as Brexit stories continue to impact the market with movements from £1= €1.105  up to £1 = € 1.125, which impacts prices by at least £5.00/tonne. At time of writing, spot oilseed rape is now in a range of £310 to £315 in England depending on vicinity to the crush. UK export markets are on hold until the new year, but there is some spot buying from the crush as farmer selling remains slow.
The spectre of Argentinian biodiesel imports in to the EU remains a bearish factor, which is exacerbated by protestations from the French biodiesel producer, Saipol that the rapeseed crush within France could reduce significantly in 2018. On the other hand, increasing soya prices -  as weather remains uncertain in South America - should, in theory, support rapeseed prices.



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