Farmgate oilseed rape prices have been under pressure in recent months due to limited global demand, but this could change as China reopens from Covid lockdowns and demand improves.
The average farm-gate spot price collected by Farmers Weekly on Wednesday 18 January was £462.25/t, down £3.50/t from the previous week, while prices for rapeseed shipped from the UK ranged from £457/t in Scotland to £485/t in Erith, Kent.
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Global markets continue to dictate UK prices. Chicago and Paris futures are both up slightly on the month, but still well below their 2022 peak.
Frontier trader Lucinda Redgate said the market continues to see ample supply of global canola in an environment where demand is less certain.
“There are later concerns about the speed of the global economic recovery, which forecasters now predict will remain slower and last longer,” Ms Redgate said.
Deliver
In the near term, further gains could be capped if Australia’s crop hits the market after record yields, AHDB said.
In the longer term, a large European rapeseed harvest is imminent, which will further increase the pressure.
However, droughts in Argentina are supporting markets as the Rosario Grain Exchange cuts its production forecast for 2022-23 by 12m tonnes to 37m tonnes.
Grower cooperative and marketing specialist United Oilseeds said global markets were also reacting to a bumper soybean crop forecast in Brazil, which should more than offset cuts in Argentina’s crop estimates.
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