Prices for rapeseed and canola recovered after falling, supported by rising oil prices

Speculative growth in rapeseed prices continues on the Paris stock exchange due to uncertainty in the market due to reduced supplies from Ukraine and delays in shipments from Canada and Australia. The speculative rise in oil prices caused by the cold weather in the US is supporting prices for biofuels and rapeseed in the EU.

In the first 9 days of January, rapeseed prices on the Paris stock exchange were highly volatile. On the first day, they rose by 2.5%, then declined for 3 days, and over the last 4 sessions they rose again by 4%.

February futures for rapeseed yesterday increased by 0.8% to 533,25 €/t or 548,6 $/t (+1.7% per week, 0% per month).

the March futures for Brent crude oil since the beginning of January rose by 4% to 77 $/barrel, which contributed to the increase in prices for rapeseed.

March futures for canola on the Winnipeg stock exchange yesterday fell 0.5% to 625 CAD/t or 434 $/t (0% for the week, -0.8% for the month) due to uncertainty with the further import of rapeseed oil in the United States amid the promised Trump increase in fees. Trump’s statements that Canada should become the 51st state of the United States have a negative impact on the Canadian dollar, which rose to 1.44 CAD/$.

the Spread between the prices of Canadian canola and European rapeseed rose again to 115 $/t, which improves the prospects for export of canola to the EU.

the Market is waiting for today’s USDA report, which may increase the forecast of the canola crop in Australia and reduced estimates of soybean consumption, which will increase inventories and increase speculative pressure on canola prices.

Tags: prices, rapeseed