Rapeseed prices remain stagnant as crushers remain only spot buyers. Most areas of England remain at £320.00 ex farm, whilst spot interest in Scotland is subdued at around £310.00 ex farm, as new export interest is getting hard to come by.
There was an announcement regarding Argentinian biodiesel import duties into the EU in January. These are likely to be reintroduced but with a provision for a zero rated quota, as long as the suppliers meet a minimum price. This is going to be ratified at the end of February, but the level of minimum price and amount of quota will determine whether this is bullish or bearish to the market.
There is a USDA report today which may move prices as it is the first report for several weeks due to the previous US Government shutdown. Focus is likely to be on US ending soya stocks and if there is any effect of recent Chinese sales and a reduced Brazilian crop.
New crop prospects for rapeseed remain in doubt with some growers still looking to rip up cabbage flea beetle larvae-infested crops. The latest EU production figure for the 2019 crop has been reduced to 18.7 million tonnes by Oil World. This will obviously change and be dependent on growing conditions, but is likely the EU will again require significant rapeseed imports. Rapeseed imports have no tariffs, so if the UK leaves the EU on 29th March, there should be no impact on rapeseed prices apart from any associated moves in currency.
Come to our joint agronomy seminar with the AHDB on 21st February at Newbury. See booking and programme details here.