Brazil and El Niño hit UK oilseeds

By FWi staff

OILSEED rape has had a turbulent 12 months which saw prices reach a record low, and there is little sign of a recovery in the months ahead.

The devaluation of the Brazilian currency triggered the markets fall and bumper harvests in many oil-producing countries have kept prices tumbling ever since.

UK producers were receiving £160/t a year ago. Now they are facing £108/t.

The market is still struggling to cope with the record EU harvest, first thought to be 10.5 million tonnes, but which was soon revised upwards to 11.3m tonnes.

Large rape and oil stocks continue to squeeze values, with Rotterdam stores already holding 80,000-100,000t.

If that wasnt enough, a recovery in palm oil production, which had suffered under the El Niño weather phenomenon, is adding to oversupply.

But an early oilseed harvest allowed 1m tonnes to be exported from EU ports between July-September this year ahead of the US soya bean harvest.

Just as well, since high yields produced the third-largest soya crop on record, at 72.8m tonnes.