MARKET conditions remain favourable for Malvern and Ledbury oilseed rape growers, according to a cooperative for growers.

Owen Cligg, trading manager for United Oilseeds, said a number of factors are working in favour of growers.

“Low stocks of corn and soya, particularly in the US following last year’s poor harvest season, have seen demand for oilseed rape remain strong. In addition, lower 2012 anticipated EU harvest production as a result of poor germination and high levels of winter kill in many Eastern European countries has accentuated the demand for oilseed rape from the UK,” he said.

He said United Oilseeds is currently trading crops at £330- £340/tonne for prompt harvest movement. Mr Cligg believes South American weather patterns are also working in favour of British growers.

“Farming in the UK operates on a global scale. Wet weather in northern Brazil and dry weather in Argentina and southern Brazil mean that cropping predictions from that part of the world are changing on an almost daily basis. Rising crude oil prices as a result of continuing instability in Nigeria and Iran are also having a positive impact on UK vegetable oil prices.”

One of the key factors influencing vegetable oil prices is an increasing demand for sustainable oil for use within the biofuels industry.

“Energy biofuels currently account for 11 per cent of global demand for vegetable oils,” Mr Cligg continues.

“This sector is growing rapidly, particularly in Europe where EU biofuel mandates have given rise to an increase in demand for crops of oilseed rape certified as sustainable.

However, Mr Cligg warns that the market will be tinged byprice volatility.

“Overall the market is likely to remain strong, but we will continue to see some price fluctuations.

High prices often ration demand and will always encourage extra production. This can have a significant effect on the supply versus demand equation,”

he adds.

􀁥 A longer version of this article first appeared in our sister publication the Three Counties Farmer, pictured right, – a new monthly magazine reporting on agricultural issues in Worcestershire, Herefordshire and Gloucestershire. To subscribe call 01905 742212 or email subscriptions@midlands.

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