Ex farm rapeseed values seem comfortable at over £320 ex farm in England and £315 ex farm in Scotland. The recent run on Sterling, currently £1=1.093 euros has boosted values as imports become more expensive and any limited exports are worth more in value.
UK rapeseed prices are now working off an import parity with Baltic imports destined for Erith and Ukrainian for Liverpool. Our latest yield reports suggest average yields will be below 3.5 tonnes per hectare, which will put UK production at around 1.7 million tonnes - a potential 300,000 tonne shortfall on domestic demand.
On a positive note, we are seeing higher yields from the HOLL variety, V316OL, which, combined with its guaranteed minimum premium of £25.00 per tonne* bodes well for gross margins this season and in the future.
As regards EU yields, these remain disappointing, and a crop of sub 17.5 million tonnes would seem likely. This means major imports from Ukraine, Australia and Canada will probably be required, which still may be enough to keep rapeseed crushings at a similar level to last season.
Whilst prices for the rapeseed complex remain firm, soya prices are dipping as President Trump has ramped up the rhetoric on Chinese tariffs. US corn and soya conditions remain benign, but late plantings will no doubt impact yields and any early frosts will be significant.
For more information on our financially advantageous HOLL Buy-Back contracts, call us on 01380 729 200 or click here
* for post-harvest movement