Oilseed Rape
A rally in rapeseed prices was short lived this week, rapeseed futures briefly found support reaching 388 euros for May but since dropped 10 euros and are now back at 378 euros. Prices are hence back to a range of £315 to 320 ex farm in England and £10 cheaper in Scotland.
The coronavirus is keeping many buyers on the side lines and hence the market is thinly traded and so any price swings are getting more exaggerated than would normally be the case. The drop in crude oil prices is concerning for the biodiesel industry but continued sales of European rapeoil to China should provide support.
New crop prices have also come under pressure as Matif levels have fallen. Latest estimates suggest an EU crop for 2020 harvest of around 17 million tonnes which will still require major imports. The UK is particularly concerning and imports of up to 600,000 could be required to meet UK demand.
Good premiums are currently available for both spring and winter HEAR varieties. Whilst we now also have winter HOLL seed prices and contracts available for any interested parties.
Beans
Old crop beans continue to be sought after as exports are still heading for Egypt. This makes beans look expensive compared to other protein sources so once Egyptian demand disappears prices may have to fall.
We are able to offer competitive new crop contracts based on wheat futures prices, plus also any uplift for a human consumption premium. We currently have keen human consumption buyers for FOB cargoes and containers so are pleased to discuss.
Oats
Milling oat prices for old crop still remain depressed as oat millers seem content to keep prices at between £120 to £130 ex farm and a significant discount to wheat. There are some oat exports going on for feed and we can accommodate all specifications, whilst we also believe milling oat exports are close to being achievable. The lack of winter oat plantings are a concern as mascani is the favoured variety in the South.
Spring plantings of winter oats invariably have quality problems and may not be accepted as milling. Spring oat planting intentions are obviously high but the latest rain may put some of these in doubt. We are operating a spring oat pool to accommodate all different qualities so markets will be easily available within the pool structure.
We already have a mascani 2021 harvest contract available based on advantageous terms against November 2021 wheat futures. With oats becoming a more popular crop, this type of contract is well worth considering.
Regards,
Owen
Excellent Spring OSR varieties are available from United Oilseeds. More details available here
