UK rapeseed prices remain in a narrow range from £320 to £323 ex in England and £310 to £315 ex farm in Scotland. The market ebbs and flows on changes in Matif and currency but has yet to reach values which encourages farm selling.
The Brexit uncertainty has generally made Sterling weaker, but any sign of a deal will likely strengthen it to the detriment of rapeseed prices. Matif prices are in a range of 365 to 380 euros, following movements in soya to a limited extent and are also being buffeted by palm oil and biodiesel prices.
Rapeseed oil remains at a healthy premium, as demand for Rape Methyl Ester (RME) to produce biodiesel remains unprecedented. The reduced crushing of rapeseed due to its limited availability and crushers switching in to soya has meant limited supplies of RME and diesel producers have struggled to meet their biofuel mandates in this calendar year.
Prices should remain supported as OSR production prospects for next season remain poor. Strategie Grains estimate EU plantings down 12% year on year, but this could be nearer 20% down if reports out of Germany, France and Romania are to be believed.
Regards,
Owen
New Blog: Read about OSR establishment lessons from this year's autumn plantings, on United Oilseeds Area Manager James Arnold's latest blog here
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