Sterling has come under pressure as the likelihood of a no deal Brexit has increased. Currently £1=1.119 euros, which has improved ex farm rapeseed prices to £310 for old crop in England and the same level for harvest. Movement for old crop in Scotland has finished, but new crop is valued at around £300 ex for harvest movement.
Matif rapeseed values have somewhat improved increasing to 371 euros for November. The latest increase has been following the Chicago corn and soya markets, albeit not at the same rate of increase. US plantings still remain well behind normal and crop development is likely to be impacted by daylight hours now shortening. We therefore expect yields in the US to be well down, which should positively impact on oilseed prices going forward, despite high stocks of canola in Canada and soyabeans in the US.
Moving forward rapeseed plantings are likely to find a balance at the current low levels. We believe that prices going forward represent a good gross margin opportunity, as given good seed bed conditions, a return to average or better yields should be possible. Also, combined with added value contracts such as HOLL and HEAR, oilseed rape will remain the best paying break crop
HOLL and HEAR Buy Back Contracts with Premiums Available from United Oilseeds