Collapse of quotations for rape on the stock exchange in Paris lowers the purchase prices in Ukraine
Sharp drop in August futures for rapeseed on the stock exchange in Paris surprised traders, as the harvesting of rapeseed is not yet complete, and the rains in France and Germany delayed the harvest and lead to losses and reduced quality of the crop.
Over the past three sessions, the August futures for rapeseed in Paris fell by 4.5% to 472.5 €/t or 513 $/t (+2.1% per month), and November – only 1.6% to 493.5 €/t or 536 $/t (+5.3% per month). This indicates a high level of demand, and the drop in August futures is due to an increase in supplies as the harvest progresses.
November futures for canola on the Winnipeg stock exchange after rising last week by 9.5% for the last three sessions fell 0.6% to 671 CAD/t or 486 $/t (+8.9% for the month), despite the heat in the prairies. According to forecasts, next week in the country will be dominated by dry and hot weather, unfavorable for canola, which is in the phase of formation of the crop.
Purchase price of rapeseed in Ukraine for two days fell by 500-700 UAH/t to 22800-23000 UAH/t or 470-475 $/t with delivery to the ports of the black sea after last week reached 23500-23700 UAH/t, so farmers have reduced sales.
Traders have already contracted more than 1 million tons of rapeseed of the new harvest and continue to actively purchase for export to the EU. Demand prices for rapeseed supplies to the EU DAP Czech Republic and Germany in July-August remain at 465-470 €/t.
Oil prices remain stable, so next week the main factor supporting prices for rapeseed will be the weather in Canada.
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