Rapeseed prices have been volatile in the new crop positions this week. After climbing again to over £450 ex farm for harvest in England, prices have subsequently fallen back to a range of £430 to £435 ex farm. A sell-off of soya and soya oil looks to be responsible, which is partly attributable to fund liquidation and some rain in the US forecast. However, our opinion is that the recent high prices are yet to quell demand which means any price drop will probably be viewed as a buying opportunity. Also, with China buying vast quantities of new crop US corn, soya will need to remain price competitive to make sure an increase in US area is possible.
Increased feed compounder demand for oats is helping to reduce this season's surplus. Oat millers seem reluctant to put out new crop prices, but with oat demand increasing this may yet backfire if supply is not as plentiful as they envisage.
Increased compounder activity has sparked the old crop bean market into life - a £220 ex farm plus is now available. Conversely prices for new crop are easing, as feed wheat futures have now fallen to £176 for November valuing feed bean prices at £205 to £210 ex for the autumn. However, we are hoping the recent rains will have at least improved yield prospects.
We are looking develop feed rye as an important break crop within the UK and are currently looking to develop relationships with feed compounders that will create the demand necessary to support the crop. New KWS varieties are not Ergot susceptible and it is a crop that should grow well on less productive land. We hope to be releasing details of a 2022 harvest buy back contract soon.
For more information about the leading OSR varieties this season, including HOLL & HEAR, and our three OSR marketing pools, please contact your local United Oilseeds Area Manager or call us on 01380 729 200.