UK rapeseed prices have improved as Matif futures have risen from recent lows. Prices in England are close to £300 ex farm in most areas, whilst £290 ex should be possible in Scotland.
The Saipol strike in France has potentially finished, allowing more rapeseed to be crushed in France for biodiesel. Also rapeoil, has potentially bben traded to China from Russia and there is more potential demand from Europe to China This would seem to be as a result of the worsening trade relations between China and Canada, so the Chinese are now looking for alternative rapeoil supplies.
Interestingly new crop rapeseed is now looking better value against wheat prices than before, as wheat prices have fallen. November rapeseed in England at £300 ex farm is beginning to compare more favourably than feed wheat at £140 ex farm. However, we are expecting a small rapeseed crop in the UK and Europe so the differential may yet increase.
Regards,
Owen
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