UFOP: EU’s rapeseed market is “lethargic”

In Germany, Ufop is reporting that “Lethargy returns” in the rapeseed market.

“Following several weeks of a lethargic cash market, early-December 2015 rapeseed sales were slightly up based on rising bids and somewhat increased supply,” the group writes. “Above all, the 2016 crop was discussed fairly frequently at the beginning of December and contracts were concluded sporadically. Wholesale prices for the upcoming crop hovered around EUR 360 per tonne, up approximately EUR 30 per tonne from a year earlier.

“According to information published by Agrarmarkt Informations-Gesellschaft mbH (AMI), processors still face gaps in demand, first and foremost for further forward positions. However, they continue to complain that margins are unsatisfactory, above all due to very slow sales of rapeseed meal. In the light of this, premiums for rapeseed have been unchanged for several weeks. Producers still have the majority of their stocks to sell, but will probably not address themselves to marketing until the coming year. Oilseed rape field crops are in a good condition and, despite unusually mild November temperatures, not in too advanced a stage of growth to go into dormancy.”

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