Oilseeds - Oils

Rapeseed: rapeseed oil follows last year's traces

June 16, 2020 3:50 PM, Der AUDITOR
Play report as audio

HAMBURG. The markets for canola and rapeseed developed slightly stronger. Support came from crude oil, as the Trump government plans to pump a massive infrastructure package of almost one billion US dollars into the US market by October, which also pulled crude oil up. It is interesting to compare rapeseed oil prices with last year.

Canola increased in the afternoon in Winnipeg with CAD 473,60 per metric tonne by 04% compared to yesterday. Rapeseed was slightly firmer in Paris at EUR 377.00 per metric tonne. Canola in Winnipeg benefited from firmer soybean quotations in Chicago and particularly higher prices on the crude oil market. After rather weaker crude oil prices in the last few days, Brent crude recovered this morning by 5.8% to USD 39.7 per barrel and WTI by 7.2% to USD 37.0 per barrel. Washington provided the stimulus, as the Trump government appears to be preparing a massive infrastructure package of almost USD 1 billion for October's release. The higher liquidity also led to better sales expectations for Canola. In Canada, however, difficult growth conditions, sometimes too dry, otherwise too wet, also supported the market. By contrast, the weaker price trend for palm oil in Malaysia had little effect on the canola market.

Rapeseed 00 (40/9/2), daily price development

Parity

EUR/mt

Diff. EUR/mt

Rouen, FOB

363.00

-2.00

Moselle, FOB

376.00

-1.00

Hamburg, CIF

372.00

-2.00

Neuss, DDP

383.00

1.00

Hamm, DDP

391.00

1.00

Mannheim, DDP

383.00

1.00

Trade sources

Trend towards firmer prices for the time being

The Western European rapeseed market benefited from the somewhat weaker euro exchange rate, which recently fell back below the 1.13 USD/EUR mark at 1.1281 USD/EUR. On the French spot market, rapeseed fell in the morning simply because there was no demand. The storms of the weekend had hardly any effect on the field crops in Western Europe. It is interesting to note that rapeseed oil prices remained almost at last year's level. If the trend were to continue as in the previous year, rapeseed prices would have to rise sharply from August onwards and even more so in September. Due to a shortage of rapeseed supplies, the EU remains dependent on imports from Ukraine and later from Australia, where the crop is expected to be high. This would be a major difference compared to last year. However, a second pandemic wave would turn the market upside down.

Categories:

View related articles

Go to the News Overview
Oilseeds
Dec 2, 2021
OTTAWA/NUR-SULTAN. The current flaxseed report from Agriculture and Agri-Food Canada does not bring any relief. In Eastern Europe, flaxseed prices have stabilised at their high level.
Oilseeds
Dec 2, 2021
CHRUDIM. The upcoming Christmas holidays reduce trading activity in the Czech blue poppy seed market, but this does not affect prices. According to initial information, next year's acreage could be similar to 2021.
Oilseeds
Dec 1, 2021
SOFIA/BEIJING. At the end of November, Eurostat again published an adjusted estimate for the EU sunflower seed crop. In China, high domestic buying interest, but also increased export demand are causing prices to rise.
Oilseeds
Dec 1, 2021
NEW DELHI. Market players report a significant decline in the sesame seed crop in India, which is why exporters are gradually having to part with their stocks. India was able to win a large part of the current tender.