Oilseeds – UK prices supported on the back of sterling movement
As sterling continues to fall, ex farm rapeseed prices in the UK remain supported. Markets are also seeing strong demand from crushers for the winter period as vegetable oil markets continue to find good support.
This week will also see the 'phase one' agreement between the US and China as part of their ongoing trade deal negotiations. However, as Brazilian soybeans are currently cheaper than the US, it is unlikely that China will switch supply unless there is a significant increase in demand.
Currently, the Brazilian soybean harvest is 'stop-start' due to ongoing rainfall but there are reports of good yields. So far, some analysts are suggesting crop estimates upwards of 125 million tonnes.Elsewhere, official statistics from the Ukrainian Agricultural Ministry show an increase in autumn rapeseed sowings year-on-year.