Rapeseed price rises in wake of grain prices

15-02-2023 | |
Photo: Canva
Photo: Canva

Grain and oilseed prices moved up again last week amid renewed tensions between Russia and Ukraine. Most of the concerns relate to last week’s criticism of the Ukrainian export corridor by Russian officials.

Russia has expressed dissatisfaction with some aspects of the grain deal and is asking for sanctions affecting agricultural products to be lifted.

Russia and Ukraine signed agreements in July 2022 for a safe corridor across the Black Sea to export grain from Ukrainian ports. This deal was extended for 120 days last November and should be renewed again next month.

Rapeseed prices are rising

Due to the renewed tensions, rapeseed prices are rising in the wake of grain prices. The first expiring rapeseed quotation on the Paris futures market closed on Monday 13 February at € 555.25 per tonne (May contract). The quotation is therefore 2% higher than at the end of January. Compared to a year earlier, the first expiring rapeseed contract is 20% lower. Rapeseed prices lost ground at the beginning of this year, but have regained support since last week. Rapeseed prices are expected to follow the same sentiment as with grain and soybeans in the near future.

Soybean prices are also rising

Prices for soybeans are currently also rising due to unfavourable weather in South America, Argentina and Brazil. The Argentinian soybean harvest has been estimated by various analysts to be lower due to the dry weather. The International Grains Council (IGC) price index for soybeans stood at 305 points yesterday (year 2000 = index100). The price index is therefore at the same level as at the beginning of this month.

In the longer term, Brazil’s record crop of soybeans could put pressure on prices.

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Annet Smale Editor Feed Markets