Prices for soybeans and rapeseed continue to grow amid a lack of precipitation in South America

On the stock exchanges in the first days of the new year, there was a sharp speculative increase in prices for rapeseed and soybeans due to a lack of precipitation in southern Brazil and Argentina in December, as well as a heat forecast of up to 30-35 degrees for the coming week.

According to the Chicago Stock Exchange, the number of soybean contracts has increased dramatically as traders actively buy futures in anticipation of a further decline in harvest forecasts.

Brazil’s agricultural agency lowered its estimate of the soybean crop by 11.3 million tons to 133.4 million tons due to the drought in the South, while StoneX lowered its forecast for the crop to 134 million tons, against Brazil’s record soybean production of 137.3 million tons last season.

 March soybean futures on Friday rose 1.7% to 5 518/ton, generally jumping 5.2% in the first days of the new year, and rising 11% in the month.

On the Paris Euronext exchange on Friday, February rapeseed futures also showed another jump of 3.9% (31.25 €/ton), reaching a new record of 828 €/ton (938.47 € /ton), adding 9.8% since the beginning of the year, and 18.9% of the price over the past month.

However, may futures on Friday rose by 14.25 €/ton to 758.5 €/ton, adding 15.3% for the month, but August for rapeseed of the new crop, although they rose yesterday by 13.25 €/ton to 592 €/ton (6 670.9/ton), but for the month they added only 6.6% of the price.

January canola futures on the Winnipeg stock exchange on Friday rose by 12 CAD/t to 1055 CAD/T (8 834/t), adding 5% of the price for the month, and March rose by 11 CAD/t to 1035 CAD/t, adding 5.6% for the month.

The increase in prices in neighboring soybean and rapeseed markets will support the increase in prices for vegetable oils, and will have a positive impact on sunflower prices in Ukraine, which at the end of the year slightly decreased against the background of a pullback in prices for sunflower oil.

GrainTrade

Tags: sunflower, Brazil, prices, soybean, Canada, Black Sea region, rapeseed, edible oils, Argentina, Ukraine