UK Oilseed rape report

"Yesterday’s OPEC announcement to cut production by 2.2mln barrels was no surprise to the market, and was viewed as not being enough to stop the rot as falling demand is still expected to see prices reach US$30/barrel," said Jonathan Lane, Gleadell oilseed rape trader.

"In Europe, our markets have been dominated by the sharp declines in both the USD$ and sterling against the Euro. The Matif market finished lower on the week as the falling US$ is likely to pull in more and more imported seed and increase the bearish supply pressure on the EU market as US$ based imports are getting cheaper. The EU could now see imports of seed from Australia reach 750thd/t and we can already account for 450thd/t and to add to this we also believe the lifting of the ban on GM canola is just a matter of time.

"The EU carryout is going to increase by 1mln/t this campaign, but for the time being our domestic market has been saved by the sharp decline in sterling. The fundamental outlook remains bearish and we need to watch the currency move very closely as a recovery in sterling will see prices drop like a stone," Mr Lane added.