Break Crop Trader's View by Owen Cligg
After a setback early in the week, OSR prices are finding support again. Potential rains in South America and rumours of Chinese soybean sellers caused the fall. However, a lack of nearby offers of rapeseed is keeping the market firm and prices are looking to regain recent highs.
The February Matif looked to test 400 euros after recent highs of 415 euros, but has now recovered to 407 euros. A weaker £ at £1=1.108 euros is in turn supporting prices as a Brexit deal seems no nearer in the immediate future.
New crop prices are also firm, but the gap between old crop at around £360 for the summer and harvest at £335 ex farm in England will at some stage probably narrow. Having said that, new crop rapeseed prices currently look better value to sell than new crop wheat.
The spread between milling oats and feed oats has narrowed, as millers would seem relaxed about covering the rest of the season supplies. We expect once Brexit is finalised demand should reappear which will support prices.
The AHDB early bird survey indicates the area for 2021 harvest will increase by 3%, which is surprising given the large amount of spring oats planted earlier this year for the current crop in store. The demand scenario for oats is robust, so the hope is that the market can take the extra production given a likely increase to normal yields.
A large Australian crop of good quality beans means the UK is no longer competitive to supply human consumption into Egypt. We are therefore reliant on feed demand, but a shortage of nearby proteins will no doubt help fill the gap left by the lack of a human consumption market.
United Oilseeds has a wide range of top maize varieties available from Hubbards Seeds. Call us on 01380 729 200 or see the varieties here.