European markets on fire

Posted: 3 Aug
European markets on fire

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.




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