Oilseed Rape report from Gleadell

OILSEED RAPE by Jonathan Lane

"European rapeseed prices were hammered lower during the last week, falling €32.75 on the November Matif rapeseed futures. This latest decline in prices has been largely driven by a sharp fall in the Chicago soy complex and another fall in crude oil prices." said Jonathan Lane, Gleadell oilseed rape trader.

"The soya market has tumbled due to better than expected crop weather in the US and long liquidation by some large investment funds. The weather forecast in the US past the middle of the month is non-threatening and this has helped to ease fears that the late planted crop will run into stressful weather during the key pod setting period which is normally in August. Soybean oil was also pulled lower by weak vegetable oil markets in the Far East coupled with a lower crude oil market. Harvest in Europe is now largely complete. Yields in France and Germany are better than average. In the UK we are only 60-70% complete and whilst the crops that have already been cut have recorded average returns, we must now start fear for what is still out in the field!

"Next week we have an important USDA S&D report which is expected to boost the size of the US soy crop and looking forward the rapeseed markets direction will continue to be dominated by external factors. Crude oil prices are having an increasing influence on the market as on the continent in particular, large truck fleets as well as agricultural vehicles have been using refined rapeseed as a substitute to the previously expensive diesel and this has been supporting rape oil prices." Mr Lane added.