Market activity quiet on break crops

Market activity quiet on break crops
Posted: 13 Aug
Break Crop Trader's View: By Owen Cligg, Trading manager

Oilseed Rape
The rapeseed harvest is drawing to an end in England and well advanced in Scotland. Prices have been on the defensive as Matif futures declined in sympathy with soya prices. A large soya crop is expected and with condition reports, improving soya prices had retreated.

However, despite a bearish supply reported by the USDA on Wednesday, there is deemed to be enough demand for soya price to since rally. This has allowed the Matif to recover to 376.50 euros for November, although it is still short of the recent  support at 380 euros.

Yields of rapeseed in England are variable and the average likely to be under 3 tonnes per hectare, although there have been some exceptionally good yields where conditions have allowed.  Prices in England are around £325 ex farm and £315 in Scotland.

Despite poor rapeseed yields in the UK and France, yields in Germany and the Baltic states are better than expected. This supply should help make for the lower production currently seen in the Ukraine. Future price direction is likely to depend on availability of Australian and Canadian supplies and although both are likely to be plentiful, the timing of Australian and GM nature of Canadian rapeseed will restrict volumes that can be traded. This should continue to support prices going forward.
Yields of winter beans are disappointing but we are still hopeful rains arrived in time to improve prospects of spring beans. There is a good export programme lined up for beans, but once this executed, new demand maybe hard to find.
Yields of winter oats are reported down on last season, so combined with a lower winter oat area good quality milling oats maybe hard to come by. Although there are plenty of spring oats planted, our view is that yields and quality are likely to be compromised. There is little interest in feed oats at present but once volumes are available we anticipate an export market to develop.

Trait-loaded LG Aurelia is proving to be the outstanding OSR variety this harvest and is available from United Oilseeds on 01380 729200. We have am excellent choice of rapeseed available including, hybrid, conventional, clearfield, clubroot and HOLL & HEAR varieties.

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