OSR falls further as wheat continues slow recovery

Old-crop oilseed rape prices fell by a further £15/t in the week to Wednesday 26 January, in thin trading, with very little stock left unsold on farm.

Nervous markets were focused on both global and domestic politics, according to traders.

Old-crop spot values were anywhere from £547/t to £582/t ex-farm, depending on region, with the lower end of the scale mainly in the far North East and Scotland.

New-crop suffered less of a fall, said grower co-op United Oilseeds, drifting only slightly lower to put harvest prices at about £485/t ex-farm midweek, for loads within 100 miles of a crushing plant

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A stronger pound, expected high end-of-season global soya bean stocks and a prediction of a larger US soya bean drilled area are affecting prices.

Wheat climbs slowly

Wheat prices continued their limited recovery, with ex-farm spot values up by about £10/t to average £220/t ex-farm midweek, and the May 2022 London feed wheat futures contract rising by about £4/t on the week to stand at £223/t midweek.

The rally is partly due to market nerves about Russia’s activity on the Ukraine border, which led investors to buy wheat.

Concerns about dry conditions for US wheat crops added to the firmer market tone. The five-year crop average shows the US producing 7% of the world’s wheat, with Russia at 10%.

AHDB Cereals and Oilseeds said another area of concern was the potential for frost damage to Black Sea crops should temperatures suddenly fall. This is in addition to the possible disruption of Black Sea origin exports.

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