Quotations for rapeseed are increasing following the rise in oil prices

Despite an increase in EU canola crop forecasts, canola and canola quotes continued to rise this week following higher oil prices.

Oil is rising ahead of the OPEC+ meeting, at which Saudi Arabia and the Russian Federation may lower production plans to stabilize prices after their significant fall in September.

The weather in Canada favors the harvesting of late crops, in particular canola, which reduces the impact of the weather factor on quotations.

November canola futures on the Winnipeg exchange rose 1.4% to CAD 863.8/t, or $638/t, from Monday amid a surge in canola prices in Paris, adding 9% in two weeks.

November rapeseed futures on the Paris MATIF rose another 2% to €646.25/t (+11.4% in two weeks) or $643.77/t since Monday. The main driver of growth is the news about the deliberate slowing down of inspections of vessels moving through the grain corridors from the Black Sea ports of Ukraine, and threats by the Russian Federation not to extend the grain agreement after November 19.

Purchase prices for rapeseed in the Black Sea ports of Ukraine remain at the level of 17,000-172,000 UAH/t or 465-475 $/t, however, due to the delay in the approach of the courts, queues have increased to 2-4 days, so traders are reducing purchases.

At the same time, demand prices for Ukrainian rapeseed with delivery on DAP – Poland, Hungary, Slovakia increased to 590-620 €/t. But buyers are offering contracts for delivery in November – January, as now the warehouses are filled with previously purchased batches of products.

The successes of the Ukrainian army in the east and south of the country worsen the mood of the Kremlin authorities, therefore there is a growing threat of blocking the normal operation of grain corridors and striking critical infrastructure of Ukraine, as demanded by Russian propagandists.

Tags: Ukraine, EU, prices, Canada, rapeseed