Oilseeds - Oils

Rapeseed: rapeseed oil follows last year's traces

June 16, 2020 at 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
Mar 28, 2024
BRUSSELS/MOSCOW. Brussels issued a first proposal for increased import tariffs on Russian and Belarusian grain products on Friday. This will undoubtedly have an impact on the prices within the EU for flaxseed.
Oilseeds
Mar 27, 2024
SOFIA/BRUSSELS. EU countries reached a last-minute deal on Wednesday to the extend free trade with Ukraine until June 2025. Welcome as this news is, the stance towards Ukraine has hardened. In Bulgaria, the prices for sunflower seeds have risen sharply.
Oilseeds
Mar 27, 2024
NEW DELHI/GARSTEDT. Production prospects are much better for psyllium in India than last year, despite the heavy rains witnessed at the start of March. Price fluctuations will also be less of an issue.
Nuts
Mar 25, 2024
NEW DELHI. With Holi, the Hindu Festival of Colours, Love and Spring, being celebrated on 25 March peanuts should have taken a sharp downturn. Yet, China caused things to play out differently. Suppliers are waiting to ship the new crop in Tanzania and sales are already underway in the USA and Brazil.