Prices for rapeseed and canola accelerated their decline, losing the speculative growth of recent months

Yesterday on the world markets continued to fall prices for rapeseed and canola, which for three days decreased by 6-9%, losing the speculative growth of recent months. The reason for the price collapse was improved weather and forecasts for soybean production in South America, expectations of reduced biofuel consumption after the change of administration in the United States and overbought market by speculative funds amid several months of stocks of canola and rapeseed by processors.

January futures for canola on the Winnipeg stock exchange for three sessions fell by 8.9% to 595 CAD/t or 425 $/t (-9% for the month), which corresponds to the level of two months ago.

the February futures for rapeseed on the Paris MATIF yesterday fell by 4% to 510,75 €/t or 535 $/t (-6.3% for three days, +1% for the month, +9.4% for two months).

Quotes did not support even lower forecasts of world production and stocks of soybeans in the new report of the International grain Council (IGC). According to the forecast of the IGC, world soybean production will decrease by 2 million tons to 419 million tons, and ending stocks – by 4 million tons to 82 million tons due to increased consumption.

Traders expect the report of Statistics Canada, which will be released on December 5, which may reduce the forecast of canola production in Canada below the forecast in September 18.98 million tons.

Tags: prices, rapeseed