Rapeseed prices are surging when compared to other commodities, catching the attention of United Oilseeds who closely monitor market dynamics. After a prolonged period of stagnation, rapeseed prices are making notable gains.
Since the start of February, rapeseed prices have rallied by 5%, or £20/t, outpacing all other agricultural commodity markets, most of which have experienced sharp declines during the same period. In relative terms, UK rapeseed has seen a 14% increase when compared to UK feed wheat, a trend likely to encourage additional rapeseed plantings as gross margins improve significantly.
In recent months, global agricultural markets have been under pressure from significant managed money/hedge fund selling. However, since early March, concerns that adverse weather conditions this growing season throughout Europe will negatively impact 2024 harvest, has prompted many funds to cover shorts. Concerns about insufficient acreage going in the ground for the 2025 harvest have further fuelled the rally, with the market now making a concerted effort to encourage rapeseed acres across Europe.
United Oilseeds Managing Director James Warner commented:
“While many growers are currently focused on spring planting, discussions about the autumn sowing season must also be considered. Amid subdued markets elsewhere, it's encouraging to see such positivity in the rapeseed market, and we anticipate demand for rapeseed oil and rapeseed meal to continue to be robust as we head towards 2025. As specialists in rapeseed, it's our responsibility to keep growers informed about market changes. We are encouraging our growers to take note of these recent market developments and to consider these signals when making cropping decisions in the coming months. One thing is for sure, the market wants to buy more rapeseed acres across Europe.”
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