Oilseed Rape
Matif rapeseed prices briefly hit 680 euros plus for November before back tracking to below 650 euros. With a strong pound at £1=1.18 euros, ex farm prices in England have ranged from £530 to £560 ex farm but both supply and demand are quiet.
Signs of a recovery in Matif prices are evident as Matif is currently approaching 660 euros. The November, Matif remains at a premium to February which is odd when crushers only want to buy after Christmas. It is probably a function of technical trading and once the November closes out on 29th October, we could see the February Matif further appreciate.
As I mentioned before, rapeseed oil demand is inelastic so prices need to be high in order to move demand to other products such as soy, sun and palm oil. Of these, the only one that has recently come under pressure is soy oil whose price reduced on the latest USDA report which suggested soya stocks year on year would increase relative to both world and US stocks.
New crop osr prices remain robust but are still around £100 below old crop prices. Historically, these remain good values and with plantings potentially 20% up may give good value.
Oats
UK oat millers are looking for offers in a thinly traded market. Export values suggest they will have to pay up to secure supplies. The major reduction in the Canadian crop will support prices for this crop year and into next harvest.
Beans
Bean prices have appreciated and are generally trading at around £235.00 ex farm. There is an export programme for October and November which is supporting prices, but the question is whether enough exports can continue to support this season's increased supply.
Regards,
Owen
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