UK rapeseed prices have eased back this week, with old crop prices now in a range of £290 to £295 in England and £280 to £285 in Scotland.

Soya prices have fallen  sharply because of a number of factors
 

1. Fund liquidation
2. Good condition scores of the emerging crop in the US
3. A strong dollar as the FED increase interest rates
4. Expectation of tariffs on US soyabeans into China as the US Iooks to continue to impose tariffs on targeted Chinese exports into the States.

 
However, the rapeseed market is potentially bullish for the following reasons:
 

1. The EU OSR production is being downgraded to 21 million tonnes due to the difficult spring followed by drought.
2. The Australian canola crop is struggling as dry weather means some plantings have been abandoned and some crops are unlikely to establish.
3. Biodiesel demand has improved as Argentinian biodiesel imports have now slowed.
4. Crush margins have improved.

 
There is currently some misinformation in the market about the level of erucic acid likely to be accepted into Erith, Liverpool and Hull for the coming season. We have been assured by these mills that they are continuing to take rapeseed at levels up to 5% erucic for the foreseeable future.

Although the legal limit of erucic acid is likely to fall from 5% to 2% in the finished oil, this can be managed within the crush and the mills wish to work with UK growers to alleviate the issues that the trade is currently experiencing.