UK rapeseed market reaps benefit of demand boost

The rapeseed market in UK improved over the Christmas period, driven by firmer crude oil prices following colder weather and strong food demand.

Although little actual trade has taken place in recent days, ex-farm prices have followed French MATIF futures up by GBP5 per tonne since December 21, to more than GBP240 per tonne, close to year-ago levels.

US soy exports in December were larger than expected, at 1.2 million tonnes, and both sun oil and palm oil prices have firmed, helping to support rapeseed markets.

Meanwhile, wheat values have also improved, following rising equity and commodity markets in the US. British prices have risen by around GBP3 per tonne since before Christmas, and traders anticipate that increased fund buying will further support values.

Spot feed wheat is now worth around GBP102 per tonne ex-farm, with new crop prices rising to about GBP110 per tonne for November. Milling wheat premiums have widened slightly, with full specification Group One varieties priced at about GBP120 per tonne ex-farm for January movement, depending on location.