UK rapeseed prices have risen this week with January trading between £330 and £340 ex farm in England depending on location. Vegetable oil prices have again been the leader with palm oil reaching 3 year highs and soy oil prices following. Crude oil prices are also firm and this has helped biodiesel demand whose margins are improving as mandates still need to be met.
There has also been an improvement in soya prices as the US/Chinese trade deal edges closer. This however may not have too much affect on the market other than switching Chinese demand from Brazil to the US.
New crop prices are being dragged by the old crop and in a current range of £310.00 to £317.00 ex farm. German plantings are forecast to be up, but only by 12% and this will mean for the first time in 22 years consecutive planted areas will be below 1.0 million hectares. With UK and French problems being very evident it is very unlikely there will be a significant increase in EU production.
