Large global supplies limit UK oilseed price rises

Oilseeds markets remain well supplied globally as Canada completes its harvest and crops in Australia make improvements.

The UK is reliant on imported products with a tighter domestic supply this year, but prices remain pressured by wider global trends.

Ex-farm oilseed rape spot prices collected by Farmers Weekly averaged £334/t on 25 October, £7/t lower than week-earlier levels and down by £160/t since the beginning of the year.

See also: Frustrated oilseeds markets struggle to make gains

Paris rapeseed futures opened midweek at €404.75/t (£353/t) for the November contract, after falling below €400/t (£349/t) earlier in the week for the first time since May.

A large South American soya bean crop is also weighing on markets, with the Brazilian Association of Vegetable Oil Industries increasing the Brazilian crop estimate to 164.7m tonnes.

Supply

Global oilseeds output was estimated at 629m tonnes for 2022-23 by the US Department of Agriculture (USDA), which was up 3% on the year.

The USDA’s latest projections for 2023-24 global oilseeds output is expected to be higher again at 659m tonnes.

This, linked with higher ending stocks from the previous crop year, is likely to create a well-supplied market into next year.

Despite a large supply of oilseeds globally, UK production was forecast to be down in 2023.

Defra’s provisional cereal and oilseed production estimates for 2023 cut oilseed rape production by 14% in England to 1m tonnes.

Yields were down 19% on the year to 3t/ha, which more than offset an increase in the total area of 6.1%. Total UK oilseed rape production estimates have been reduced to 1.2m tonnes.

This year’s OSR plantings are also reportedly struggling in many regions due to crop damage, with traders warning the UK may find it difficult to produce a 1m-tonne crop next year, which will further increase reliance on imports.