New crop rapeseed prices have fallen significantly this week touching £410 ex on Wednesday after reaching £450 ex last week. A selloff of the Chicago corn and soyabean markets have been the main driver, as better weather and fund liquidation seem to have impacted prices.
Today, Thursday, prices are recovering and August matif prices have recovered to 512 euros. This puts the current harvest price at around £420 ex farm and we wait to see if prices appreciate further. Demand should remain robust, especially as biofuel mandates look to stay mainly in place. This makes demand inelastic,so prices may need to rise again to encourage extra supply.
Increased feed use is still apparent, but oat millers are still content to wait until nearer harvest before looking to price new crop.
The bean market is quiet as old crop supplies gradually trade into animal feed. New crop is not mentioned, but harvest prices of £200 ex farm are still generally available.
For more more information on United Oilseeds leading OSR varieties and pool marketing, plus Buyback contracts on Beans, Linseed, Oats, Peas and Rye, please contact your local United Oilseeds Area Manager or call us on 01380 729 200.