Rapeseed prices remain volatile in thin trade. The November Matif rapeseed expires tomorrow after briefly hitting 700 euros (currently at 687.00 euros). There is still demand for rape oil keeping prices high because the use for food and biodiesel are both relatively inelastic as we approach the winter months. Logistics issues are at the forefront of traders minds as demand for lorries and ships outweighs other considerations.
The Canadian market is also firm, as November Winnipeg has hit a high of over $1000/tonne as exports are initially higher than expected.
Against the shortness of supply of Canadian canola, Australia is still expected to have a large harvest of over 5 million tonnes. There is a large line up of boats looking to load out of Australia in November, some of which will arrive to Europe around the New Year. The issue will be how much Australian canola goes to destinations other than Europe, which potentially means the EU runs out of rape oil later in the season.
New crop prices are also holding well, with ex farm prices between £450 and £470 ex farm. A large South American and US soya crop may well curtail prices, but with current high vegetable oil prices, values should be supported in the medium term.
Our new crop 2022 pool intention forms are now going out for anyone looking to commit.
Some export activity has been supporting prices, but beans have been slow to move off farms until moisture levels are sufficiently reduced. Some interest for human consumption beans is providing a small export opportunity, but this likely to disappear once Australian beans come on line.
New crop contracts over a feed base are currently available.
Spot oats are difficult to move as haulage considerations lead to increasing frustration. Prices in the New Year are better, currently over £180 ex farm. The back drop of harvest shortfalls in Finland and Canada should continue to support the market. This should lead to a draw down of world stocks and,with increasing demand, this all goes well for good prices for next season.
Produce of Area OSR Contracts that have no penalties for under production are available from United Oilseeds. Call your local United Oilseeds Area Manager or Telephone 01380 729 200