06/08/21 Markets remain steady

Posted: 6 Aug
Break Crop Trader's View: by Owen Cligg, Trading Manager, United Oilseeds

Oilseed rape
UK rapeseed prices remain steady as harvest progresses in between the showers. Ex farm prices in England are above £440.00 ex, but most crushers seem to be well covered with imports until October.

However with supply potentially only 1 million tonnes against UK demand of up to 2 million tonnes, oilseed rape will be well bid into store to help meet the required demand later in the season.

Yields are currently variable, but likely to run at the long term average of 3.5 tonnes per hectare. At current prices, it reinforces rapeseed’s position as the most profitable break crop and we envisage the area increasing for next harvest.

Canola prices in Canada have recovered from recent lows of below $850/tonne to now trade up to $885/tonne. These prices represent significant premiums over European prices which begs the question how does Europe fulfil its 6 million tonnes import requirement, when new crop Australian seed will not be available until December at the earliest.
Feed bean crops look good in the field, and prices for feed are holding above £200/tonne. Prices are beginning to look expensive against other protein sources and export interest is limited. Locking in to new crop sales will be probably be wise if protein demand does not pick up.
First indication of oat qualities and yields are variable. Specific weights range from 44kg/hl to 58kg/hl. The lack of sunshine in June could be an issue as are continued showers which could affect milling quality. Oat millers are looking to buy at discounted prices, but if Canadian quality and yields are reduced as expected there should be good export opportunities for milling oats in the future.

OSR seed for drilling is currently in very high demand. United Oilseeds has a wide choice of varieties available, whether it be Conventional, Hybrid, Clearfield or Clubroot. Call your local United Oilseeds Area Manager or Tel 01380 729200 for more information.

Traders View Author image