The risk that Germany will reduce the blending percentages for biofuels is putting pressure on the market.
In addition, imports from Canada and Australia have increased considerably compared to last year. French authorities believe that the sustainability checks on imports should be strengthened, because with the high import figures, sustainable French rapeseed production is ignored.
The February contract for rapeseed on the futures market in Paris fell to € 529.25 per tonne on Monday 23 January. That is the lowest level for the first expiring contract since August 2021. Compared to a year earlier, the quotation is now more than € 26% lower.
Soybean prices are also under pressure. The IGC price index, a measure of the price of soybeans in the world, fell to 300 points on Monday, January 23 (year 2000 = index 100). The soybean price index is therefore more than 3% lower than a week earlier. Precipitation in dry Argentina causes prices for soybeans to drop.
Soybean harvesting operations have started in Brazil; 1.8% is done. Last year around the same period, almost 5% of the harvest was completed. Precipitation causes delays on land. The crop yield is estimated by the Brazilian market agency AgRural at a record 152.9 million tons.
US soybean exports were within expectations at the start of the week. Demand from China could decrease as the Chinese New Year is celebrated. The Chinese markets will remain closed until Monday, January 30. Furthermore, 192,000 tons of soybeans were sold from the United States to an unknown buyer this week.