Higher rapeseed prices due to good export

26-10-2022 | |
Photo: Canva
Photo: Canva

The export of rapeseed is going well, which means that the closing stocks for the 2022-23 season are expected to be low. As a result, the price of rapeseed is increasing.

The first contract for rapeseed (November) to expire on Monday 24 October fluctuated between €624 and €647.25 per tonne on the futures market in Paris. In the end, the listing closed the trading day at €644.75 per tonne, significantly higher than before the weekend. This level will be held on October 25.

Rapeseed prices under pressure in September

In September, the rapeseed quotations were still under pressure because Coceral, the European organisation for the grain trade, in its latest forecast still assumed a higher rapeseed yield than previously thought. In the EU-27, the rapeseed harvest amounts to 19.5 million tonnes. That is more than 1 million tonnes more than was estimated in May.

Lower soy price

Prices for soybeans are now under some pressure. Harvesting operations in the United States are progressing smoothly due to the dry weather. Last weekend, 80% of the acreage of soybeans in the US was harvested. The 5-year average is 67% around this time of year.

The availability of soy on the world market currently remains tight. This is partly due to the low water level in the Mississippi, the second longest river in North America. As a result, less can be exported.

In addition, Brazil does not have large stocks at the moment. The new harvest starts there after the turn of the year. In Brazil, a third of the soya acreage is now sown. Usually about 38% of the sowing work is done around this time.

Due to the limited supply, China is more dependent on Argentine soy for purchasing.

Annet Smale Editor Feed Markets