Rapeseed
UK rapeseed prices have continued to appreciate making new season highs following Paris matif rapeseed and Chicago soyabeans. Rapeoil prices have recently gained 100 euros in the spot position making crush margins a bit more attractive. Howeve,r most European crushers seem to be crushing at maximum capacity and are unable to take advantage of the improved economic environment. Erith is now up and running to the relief of suppliers and customers.
The overall picture may continue to the upside whilst funds continue to be long and supply issues are at the forefront of buyers minds. La nina is developing in South America and is improving soya values, whilst shortages of sunflowers and palm oil are keeping the vegetable oil complex firm. Demand problems may not be far aware with Covid19 issues still relevant and the spectre of Brexit still not resolved. Currency will remain an unknown and suppliers should be aware of price risk in both directions.
Beans
Some indications of improved UK feed demand should help values into the new year, but a lack of export demand is making spot markets problematical.
Oats
UK millers continue to use spring oats to fulfil demand, once these become utilised we are hoping for prices to improve. Good demand for export feed oats and UK compounding albeit at low levels should underpin prices going forward.
There is an apparent issue with winter oats not having thrashed well this season leading to an excess amount of tails which are impossible for the oat millers to process. Vigorous cleaning should help to solve this problem, but it is unwise to load anything that could easily get rejected.
Regards,
Owen
