Rapeseed
UK rapeseed prices are still on the defensive as crushers believe there is more than enough old crop stocks left to meet the remaining demand.
United Oilseeds has been able to access some limited export demand, so hopefully that helps move Scottish and Northern English balances. Whether demand comes back when lockdown is lifted will no doubt be the most telling factor for prices for the rest of the season.
In the meantime, it would seem sellers are prepared to hold some stocks over to new crop where the shortfall in supply is more apparent. A UK crop of 1.2 million tonnes will require major imports even if significant stocks are rolled over from old crop.
Oil World has recently reduced its 2020 harvest for the EU to only 16.7 million tonnes, as production prospects worsened in April. It remains to be seen if recent rains will have much affect but, with many short flowering crops apparent, there is not much optimism.
The outlook for biodiesel is unlikely to fully recover, as Coronavirus could change social behaviour generally.
Oats
Oat demand has been higher recently as stay at home Britain seems to have more time for breakfast cereals. Hence oat millers are busy, but ample milling oat supplies have restricted the price movement upwards. Interestingly, feed oat exports have been busy this season to Europe and this all goes well for finding markets for the increased availability of spring oats for the coming harvest.
United Oilseeds Long Oat Pool is a good choice for those worried about likely quality, due the difficult growing conditions.
Beans
Old crop bean demand is gradually being filled as the Egyptian market is now effectively finished. New crop beans have reduced in price following wheat futures.
Regards,
Owen
For more information on winter oilseed rape varieties, HOLL and HEAR contracts, beans, linseed, oats and peas, please call us on 01380 729 200 or contact your local United Oilseeds Area Manager
