Trader's View: By Owen Cligg, Trading Manager
Oilseed Rape
Rapeseed crushing in the UK should remain at robust levels as demand for rapemeal and rapeoil for food use continue. As the UK does not produce rapeseed oil for internal biodiesel production the fall off in fuel demand is more of an indirect effect.
EU biodiesel producers are struggling and their lack of demand is causing vegetable oil tanks to soon reach capacity. This means biodiesel plants are likely to have to stop, which has major repercussions causing rapeseed demand to fall. Some EU rapeseed crushers are hence switching in to soybeans, which have less than half the oil and can so better adapt to the changing economics of good protein demand but poor oil demand.
Spot UK rapeseed prices are valued from £305 to £310 ex in England and £10 less in Scotland. New crop values for harvest are at similar levels. Matif rapeseed prices have recently risen but values in sterling are only steady, as a similar rise in the £ versus the euro is mitigating any gains.
We now expect stocks of rapeseed in both the UK and Europe to be carried into new crop. In theory, the continued low supply of EU rapeseed would suggest these stocks are needed. However, good production prospects from Ukraine and Australia will provide some unwelcome competition.
How the EU biodiesel industry recovers from the coronavirus lockdown will be a major factor in prices going forward. There are indications we may need to rely less on biodiesel demand, and hence HOLL and HEAR opportunities will be more important. United Oilseeds can offer excellent premiums on these for harvest 2021.
Beans
Demand for old crop beans to Egypt has now dried up as good quality Australian beans are now available. Old crop prices however remain firm. New crop bean prices are also holding up well with £190 to £200 ex farm available in many areas, This is despite a bigger planted area of spring beans. United Oilseeds can offer contracts based on wheat futures to interested growers.
Oats
Good demand for feed oats to Europe should mean that the current exportable surplus of oats finds a home. We currently have an export programme out of Ipswich and this all goes well for securing markets for the coming season. We are operating a new spring oat pool with access to storage and markets for those growers who are growing extra spring oats. We also have Mascani winter oat contracts available at a relationship to wheat futures for harvest 2021.
Linseed
United Oilseeds continues to supply linseed to meet mainly UK demand and we have contracts and storage solutions to suit growers needs.
United Oilseeds has a wide choice of spring rape varieties available, including Lagonda, Lumen Performer and Sunder.
If you have a requirement for grass seed, we can supply short, medium and long term leys, plus rejuvenator and equine mixes from Hubbards Seeds. For spring oilseed rape or grass seed, please contact your local United Oilseeds Area Manager
