Rapeseed markets have been well bid of late, as demand remains robust to Erith and Liverpool. Prices in England have approached £290.00 ex farm for April, whilst Scottish prices are in a range of £275 to £280 ex farm. Matif prices are now supported over €350 for both May and August. It is likely that support for the Matif is more focused on new crop rather than the old crop position.
Demand for biodiesel is still poor and once the spring arrives, existing soya - based biodiesel will become readily usable as the temperature increases. However, there are worries regarding new crop, with both soya bean and rapeseed issues lending support. The Argentinian soya crop is getting further downgraded to less than 40 million tonnes and US weather in the northern plains remains wet and cold which could cause planting delays.
There is potentially winter kill on rapeseed in Eastern Europe which could become more apparent as the growing season develops. Also, a delayed spring in Canada potentially puts back canola plantings so the original intentions may not get completed.
Our opinion is that old crop prices may still struggle but we do have some upside potential on new crop.
Regards,
Owen
