UK ex farm prices of rapeseed are struggling to improve, ex farm spot values are in a range of £310 in Scotland up to £320 in England. Currency and matif moves are making for a volatile market though unfortunately help from one is normally mitigated by a negative movement in the other.
UK crushers are prepared to wait to price seed as crush margins are not as necessarily favourable in the forward positions and they believe the UK has adequate stocks. Having said that, biodiesel prices are very strong in the spot position so demand for spot rapeoil is good.
The current spotlight is on rapeseed plantings throughout Europe. The United Oilseeds survey suggests plantings could be down 10% in the UK. Whilst elsewhere in Europe reductions could be even larger in Germany, France and Romania. Therefore supply for 2019 harvest is likely to be tight again even with an increase to average yields. Values for new crop harvest are also around £310.00 ex farm so in theory new crop strength should also support old crop prices.
Regards,
Owen
