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

The old crop rapeseed market remains underpinned amidst slow trade. The UK appears to be well sold with very few significant parcels left on farm, but demand is equally unimpressive. The sharp rally in rapeseed prices that we have witnessed since early February has not been reflected on a 1:1 basis in the oil and meal products and old crop crush margins are not encouraging the crushers to chase seed prices higher.

Transport delays in Canada that had resulted in Australian seed destined for Europe being swapped to alternative destinations is now beginning to get sorted out. However, there is still a significant backlog and by the time the Canadian canola exports get back into full swing the combines could well be rolling in Europe – not good timing from a price perspective for UK markets at harvest.

In the short term politics in the Ukraine and the tight supply situation should keep prices underpinned. But, with a €50/t differential between old and new crop, the two market will have to come together. In the end it looks more likely that the old crop will come down to meet the new.