Higher oilseed prices

14-06-2023 | |
Photo: Canva
Photo: Canva

There are concerns on the international stage about the unrest in Ukraine. In addition, there are reports that there will be no extension of the grain deal, which expires in the second half of July. Partly because of this, prices of commodities are experiencing upward pressure on international markets.

In addition, prices for soybeans moved up on the Chicago futures market late last week due to soybean oil prices rising sharply. There is strong demand from the biodiesel sector for this oil and several end-users in the food industry may have experienced shortages.

El Niño could affect Brazilian soy crop

Demand for Brazilian soy is increasing as supply increases. According to the association of oilseed exporters Anec, Brazilian exports this month will amount to more than 13 million tons. In comparison, last year the country exported barely 10 million tons of soybeans in the month of June. In the longer term, the El Niño weather phenomenon could affect the next Brazilian crop.

Eyes on US soy plantings

Eyes are currently focused on plantings in the United States, where most of the soybean acreage has been sown. By the reference date of 11 June, 96% of the soybean area had been sown. The 5-year average is around the same reference date at 86%. Precipitation is expected in most US regions where soybeans are grown in the coming week. This is beneficial for the crop that has just been planted.

Rapeseed prices hitch a ride with soybeans

Rapeseed prices are also rising. These are mainly piggie backing a ride with the higher quotations of soybeans. The first expiring contract for rapeseed on the futures market in Paris was € 440 per ton on Monday 12 June. That is 4% higher than was quoted a week earlier, bringing the quote to the level of the end of April.

Annet Smale Editor Feed Markets