Jonathan Lane, Gleadell’s Trading Manager, comments on the OSR market

Rapeseed prices slipped back again this week as crops across Europe continue to develop unhindered by any weather issues. We are now forecasting the European crop to reach 22mln t and the UK crop at 2.35mlnt, however if we get a good pod fill our domestic production could reach 2.5mln t.

Rape oil stocks across Europe remain high and are likely to cap prices, pressurising crush margins and this could well keep rapeseed prices on the back foot as harvest approaches.

Farmer selling in both Europe and the Black sea remains limited, but with big stocks of old crop canola still available in Canada it seems unlikely that the market will be squeezed. Unless we see a major weather or political problem, the outlook for prices for the harvest position looks bearish.