This week UK rapeseed prices are lower as a stronger Pound has meant export values have reduced. Spot prices are now struggling to reach £320.00 ex farm in England and trading around £312.00 ex farm in Scotland.
We have an export program lined up out of Scotland so are expecting a continual flow of vessels for the rest of the season which should help move current stocks. The UK crusher is happy to buy spot but has little interest further forward as they believe stocks are adequate and, whilst forward crush margins are lower, there is no incentive to add cover in the April-June position.
There is also a belief that biodiesel producers will switch back into palm and soya methyl ester so the high premiums being paid for rape methyl ester may no longer be necessary. The general vegetable oil complex is showing signs of support with soya prices higher on dry conditions in Brazil and US / China potential business, whilst palm oil prices are also better as stocks show signs of diminishing.
Price outlook is uncertain at present, with Brexit still a major concern.
Regards,
Owen
Come to our joint UOM / AHDB Agronomy Seminar on Thursday 21st February 2019, in Newbury. Details and full programme here
