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Market thinly traded

Date Added: 12/05/2017

By Owen Cligg, Trading Manager, United Oilseeds

UK oilseed rape prices have remained in the recent band despite weather concerns of drought and frost.

 Old crop prices have edged back to £320 to £325 ex farm, as the crushers continue their policy of only buying hand to mouth.  New crop prices remain under £300.00 ex farm for harvest, so doubts over production have accordingly kept sellers on the side lines.  Oil World’s latest production estimate puts EU production at 21.00 million tonnes which is only 600,000 tonnes over the current season and well below the average of the last 5 years. This means significant imports will be again be required from Australia, Canada and Ukraine. If Australia gets a potential drought and Canada struggles to plant canola due to the current wet conditions, these imports could prove problematic.

 The current rain is certainly welcome but some commentators think it may be too little too late.  The synopsis on oilseed rape is certainly difficult to read as we have seen similarly dry years still produce high yields, however frost damage and pest incidence may yet be more of a yield determinant.

 Regards,

 Owen

Trading Manager

United Oilseeds Marketing Ltd

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