UK rapeseed prices have eased as Matif futures have continued their downward move - currently May futures are €357.00 having fallen from €370.00 euros on 12th February. Prices in sterling have been further affected by a stronger pound, currently £1=1.162 euros as a no deal Brexit seems somewhat less likely.
Prices in England have fallen to £300 ex farm for spot, whilst Scottish prices are barely £290 ex farm as export interest for new business is not a current option. One issue is that there has been cheaper French rapeseed offered, as some Saipol plants who produce rapeoil for biodiesel have been on strike. Also Winnipeg canola futures have been heavily sold as a potential trade dispute between China and Canada is developing over the extradition of a Chinese Huawei executive from Canada to the US.
There are still major concerns on EU rapeseed plantings. The latest Oil World estimate has reduced next year’s EU estimate from 18.6 million to 18.1 million tonnes. Large reductions in planted area due to drought, in Romania and Bulgaria, are partly contributing to this fall. Despite this, harvest values are currently around £290 ex farm in England with little activity as growers are slow to come to market.
It is worth noting that in these volatile markets, pools are always a sensible strategy in order to smooth out the troughs that sometimes occur
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Regards,
Owen
