Rapeseed markets have fallen dramatically this week with a fall of over 20 euros on the May Matif futures from 371.50 euros on Monday 6th March, to below 350 euros on Friday 13th March.
Market sentiment was severely dented on Monday by the decision of Russia not to restrict crude oil production in line with OPEC, and then Saudi Arabia decided to drop prices causing a major fall in crude oil futures. In turn, this fed through to vegetable oil markets. Ongoing concerns with coronavirus, which are restricting travel and economic activity, mean prices continue to fall.
UK rapeseed prices are partially cushioned by a lack of farm selling and a fall in sterling. Currently £1= 1.123 euros. UK ex farm prices currently stand at £300 to £305 ex farm for old crop and a similar price for new crop. Markets are continuing to navigate through unprecedented times and the apparent shortfall in supply will need to be addressed at a stage in the future.
Feed oat exports are helping to reduce the current exportable surplus and we are also seeing demand for feed oats to compounders. Milling oats remain bid at £120 to £125 ex farm, with millers particularly looking for winter varieties in the south that can be potentially stored into new crop to make up for lower winter plantings. Although spring plantings will more than make up the shortfall, their quality is often variable and any surplus may prove difficult to place.
United Oilseeds is offering a Spring Oat pool to take various qualities and also offer specific stores to take harvest movement. We are also offering 2021 harvest mascani contracts for movement 2021 onwards based on a small discount to Nov '21 wheat futures.
Old crop bean prices remain buoyant but demand is showing signs of tailing off. New crop beans can be traded at improved premiums to wheat futures, plus human consumption bonuses where applicable.
HOLL OSR contracts, plus the best "00" spring and winter oilseed rape varieties are available from United Oilseeds - Contact your local United Oilseeds Area Manager or call us 01380 729 200