Rapeseed and canola prices rose again to record levels

After the release of a rather “bullish” October USDA report on oilseeds, traders began to take profits, which led to lower prices for rapeseed and canola. However, they resumed growth amid rising prices for oil and palm oil and due to limited supply.

The decline in soybean prices has not yet affected neighboring rapeseed and canola markets, but this may happen in the second half of the season, as buyers will increasingly buy soybeans against the background of improving production prospects in South America.

Yesterday, on the Paris Euronext, rapeseed quotes Rose immediately by 15.5 €/ton to another high of 689.25 €/ton or 8 802/ton, adding 6.5% over the week with the support of the palm oil market, which rose by 1.7% on the Malaysian stock exchange yesterday.

Since the beginning of the month, rapeseed futures have increased by 5%, Malaysian palm oil – by 9%, Brent crude – by 6%.

The rise in the price of palm oil is due to a lower-than-expected level of production in Malaysia. But according to the oil World forecast, global palm oil production in 2021/22 MG will increase by 3.5-4 million tons due to increased production primarily in Indonesia and slightly in Malaysia.

November canola futures in Winnipeg declined after the release of the USDA report, but yesterday rose 1.7% to 938 CAD/ton or 7 760/ton, adding 3.8% for the month.

November soybean futures at the Chicago SWOT rose 0.6% to 4 450.8/ton yesterday, losing 1.4% since the beginning of the month under pressure from higher forecasts for the US soybean harvest.

High oil prices support the quotes of” energy ” crops that are used in the production of biodiesel. However, yesterday’s macroeconomic data on lower production rates in the United States and China in the 3rd quarter stopped the growth of oil prices.

GrainTrade

Tags: rapeseed, palm oil, canola, prices, soybeans