The price index of the International Grains Council (IGC) puts the soybean price index at 305 points on Monday, November 21. That is 1 point higher than the previous trading day.
Compared to a year earlier, it is about 16% higher. The soybean price index is a measure of soybean prices in the world. Soybean prices are stabilising after last week’s price drop.
Last week it was announced that the grain corridor from Ukraine across the Black Sea has been extended for another 120 days. As a result, the raw materials market became less tense and prices fell. The euro has strengthened against the US dollar, putting pressure on prices. The same goes for soybean prices.
On the other hand, the soybean price is supported. The latest Wasde report from the US Department of Agriculture (USDA) showed that the world’s closing stocks of soybeans for the 2022-23 season may be larger than previously thought. This is partly due to demand from China and Mexico. There are currently some concerns about the import of soybeans by China. The country is pursuing a zero-covid policy and has recently instituted new lockdowns.
The rapeseed price also fell last week. The first expiring rapeseed contract on the futures market in Paris (February 2023) fell at the end of last week, but found support at the €600 per tonne mark. On Monday, November 21, the February contract closed above the resistance line at €603 per tonne. The higher palm oil price in Kuala Lumpur, partly due to good export figures, could stimulate rapeseed prices this week.