Weaker sterling boosts rapeseed as dry weather hits yields across Europe

Reliance

The EU would typically rely on Ukraine pre-Christmas, but sub-average yields and Chinese interest in supplies has brought extra competition.

“As such, imports from Canada and Australia will assume more importance this coming season. Prices will need to reflect this.”

Closer to home, Mr Somerscales said the pound’s sharp depreciation had lifted the cash market higher.

He said: “The fact is that in the last week MATIF’s rapeseed market has had less of an influence on domestic UK rapeseed prices than the pound’s daily gyrations.”

AHDB analyst Alice Bailey said the EU was still facing tight supply and there were also reduced estimates of global soyabean production.

“This is primarily driven by a drop in US production estimates, where uncertainty still lies around the planted area,” she said, adding development remained behind last season and would remain a ‘watch point’ for yield prospects.

“With global oilseed prospects lower, there could be further support for European rapeseed futures. A weaker sterling would continue to support UK physical rapeseed prices further.”