Soybean and rapeseed prices remain under pressure

Photo: Canva
Photo: Canva

Weather conditions in the United States are favourable for the soybean crop. And to some extent this is putting prices under pressure. The rapeseed quotation is also under pressure.

In addition, the harvest is underway in Brazil; this can result in a record production. The IGC price index, a measure of the price of soybeans in the world, fell to 279 points yesterday (April 11) (year 2000 = index 100). The trend for the soybean price has been declining since the first quarter of 2023. Compared to a year ago, the price index is 18% lower.

Rapeseed quotation under pressure

The rapeseed quotation is also under pressure. At the beginning of April, the first expiring contract on the Paris futures market recovered after the price fall at the end of March. But at the end of last week it was again quoted lower. The first expiring contract (May) fell to € 453 per ton on April 5, before recovering slightly on Friday, April 6 to € 461.50 per ton.

Large rapeseed supply

The price of Canadian rapeseed, which is at a higher level, somewhat supports European rapeseed prices. The supply on the world market is good. Canada, the world’s leading producer and exporter of r

apeseed, expects a production of 18.2 million tons for the 2022-23 season, according to the latest publication by the statistical office StatCan

The rapeseed stock is estimated at 11.4 million tons in Canada (as of December 31, 2022). This means that the stock is more than 29% larger than a year earlier on 31 December. A larger rapeseed production in 2022 means that the rapeseed stock has increased. As a result, the available supply on the world market has also increased.

It makes a difference that the global demand for rapeseed is good. Australia expects a record harvest of possibly more than 7.5 million tons, giving Canada more competition in the export market.

Annet Smale Editor Feed Markets