Oilseed markets push back towards £380/t
© Tim Scrivener UK rapeseed markets remain buoyant and responsive to wider global oilseed trends such as less favourable crop conditions in the US.
However, industry reports suggest a slightly more bearish outlook over the longer term, with a large global supply forecast.
Spot prices collected by Farmers Weekly on 25 August for oilseed rape averaged £361.9/t, an increase of £10/t on a week earlier.
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Delivered OSR prices to Erith and Liverpool were up marginally on 29 August with prices quoted at £380/t for August.
Grower-owned co-op and marketing specialist United Oilseeds reported a number of mixed market drivers, with lower production estimates in Germany and the US offering support to prices, while weaker gas futures and palm oil prices weighed on the market.
The EU Commission updated its total EU-27 rapeseed production estimate last week for the 2023/24 season to 19.1m tonnes, slightly below last year’s levels, but still well above the five-year average.
Traders at Frontier say this will provide a strong base for European crushers to originate from and could lead to an even larger carryover into next season.
Paris rapeseed futures for the November 2023 contract opened at €472/t (£405/t) on 29 August, up by €7/t (£6/t) on week-earlier levels.
In the UK, traders have reported some quality concerns and flea beetle damage to crops in the South.
Higher moisture contents have also left many farm businesses with increased drying costs.
The AHDB harvest report estimated average yields of between 2.8t/ha and 3t/ha for winter oilseed rape in the UK.