Rapeseed prices have fallen as they struggle to make headway against macro economic factors and better than expected yields.
Fears of recession and Covid problems in China are continuing to have a negative impact and less than expected increases in crude oil production have failed to stop oil prices dropping close to $90 a barrel.
Also better than expected rapeseed yields in Europe are alleviating immediate supply concerns so crushers are relaxed about supplies going forward. Crush margins for biodiesel are good, but low water on the Rhine means German crushers are unable to crush at full capacity.
Also good production prospects in Canada and Australia are indicating good supply availability for later. However, we expect biodiesel demand to remain buoyant which will eventually support prices. Old crop values range from £500 to £510 ex farm.
Concerns about new crop are now developing as little prospect of rain could mean dry seed beds and poor establishment. Hence new crop is now only a £5 to £10 discount against old.
Oat prices are in the doldrums, as the early harvest encourages oat millers to try to buy at around £200 to £210 ex farm for harvest. These prices look undervalued, but we need growers to sort out storage issues before prices should increase.
Market is quiet with parcels currently looking for movement. Human consumption premiums are available for the better samples.
United Oilseeds offers crop Marketing Pools to help counter market volatility and have three pools to suit your individual needs. United Oilseeds has the biggest OSR tonnages under pool management in the UK. Call your local United Oilseeds Area Manager for more details or 01380 729200.