Jonathan Lane, trading manager at Gleadell Grain Merchants, reveals that, though the market may not be ideal, European rapeseed prices are strong and look set to continue to be so.  

With rapeseed now trading £10 to £15 off harvest levels, sellers appear to be reticent to trade at current prices. Having sold a large quantity of rapeseed already there would appear to be little or no urgency to rush to the market. Rapeseed has held up well since the September USDA report trading in a £15 price range between £355 - £370 ex farm, depending on location.

We have seen large falls in Chicago Soybeans from a high of 1460 to a low of 1210 down 17% based on November 11. Crude Oil has also fallen 7-8% over the last 10 days. Soybeans, amongst a range of commodities, are accommodating a change of sentiment from external investors who have reduced their long holding substantially. Technically, soybeans and crude look over sold at this time and should benefit from a short-term bounce prior to the October USDA report. 

Weather conditions have generally been good in the UK, and we would expect to see an increase in oilseed rape winter plantings, although there will be a decrease in the German rapeseed planting figures due to their very wet end to harvest. European rapeseed prices are still relatively strong and demand looks set to continue well into the New Year.