Rise in price of rapeseed futures in Paris by 2.1% will support prices in Ukraine

Amid unfavorable weather conditions, the Strategie Grains agency lowered its forecasts for oilseeds harvest in the EU in 2024, in particular, rapeseed – from 17.94 to 17.8 mln tonnes, soybeans – from 3.04 to 2.99 mln tonnes, sunflower – from 10.72 to 10.49 mln tonnes.

In the North-West of Europe, the rains continue, which delay the harvesting of rapeseed, but processors still have sufficient stocks of the old crop. amid the strengthening of the biofuels market and the deterioration of the potential of the soybean crop in the United States, the price of vegetable oils are rising, which supports the price of rapeseed.

On the Paris MATIF August futures for rapeseed yesterday rose 2.1% to 487,5 €/t or 523 $/t (+5.5% for the week), approaching the maximum reached in late may.

On the Winnipeg stock exchange November canola futures during the week rose 1.8% to 627 CAD/t or 456 $/t following the rise in soybean prices in Chicago, but they are held back by improving weather in the prairies.

In the current season, Canada exported 6 million tons of canola, which is significantly lower than in the previous season – 7.5 million tons.

In Ukraine, rapeseed is just beginning to be harvested, so purchase prices are rising amid a shortage of supplies. During the week, export prices for rapeseed with delivery to the Black Sea ports increased by 300-500 UAH/t to 20300-20700 UAH/t or 440-460 USD/t, and at domestic elevators – to 18500-19800 UAH/t EXW. Demand prices for deliveries to Romania and the Czech Republic increased by 10 €/t to 440-450 €/t, and to Germany – to 450-460 €/t.

Abnormal heat is prevailing in eastern Ukraine and southwestern Russia, i.e. in the main sunflower growing regions, but the precipitation forecast for the coming days will reduce air temperature and plant stress.

Tags: prices, rapeseed