European grain and oilseed markets have been on fire as dry hot weather continues to lower production estimates of grains, oilseeds and forage. LIFFE November wheat futures are trading between £190 and £195/tonne, whilst November matif rapeseed is holding at around 380 euros which equates to around £320 to £326 ex farm. Harvest rapeseed prices are between £305 to £315 ex farm depending on area.
On the face of it rapeseed prices are potentially under valued versus wheat, but soya prices continue to be under pressure as the Chinese/US tariff situation continues to weigh in the market. In deed the EU is likely to be a prime destination for US soybeans which potentially means less rapeseed crushing as soya displaces rapeseed in the European plants that are able to switch between rapeseed and soya.
Regards,
Owen
