Rapeseed prices fell sharply after reaching a record level of 994.5 € / t
The senseless war waged by Kremlin criminals against Ukraine and the entire civilized world continues to raise oil and food prices as markets suffer from uncertainty over Ukraine's food supply and production if the sowing campaign fails.
European countries are actively trying to reduce or stop purchases of Russian oil, as a result of which oil prices have risen by 13% since the beginning of the week to $ 122 / barrel.
Following oil, palm oil prices rose 10% to 6,192 ringgit / t or $ 1,467 / t on Monday, and soybean oil, which is now the main alternative to soybean oil, rose 5% to $ 1,674 / t.
Deliveries of soybean oil from Ukraine are practically stopped. From April 15 to September 1, 2022, Russia will introduce quotas for the export of 1.5 million tons of sunflower oil and 700 thousand tons of meal, as well as plans to increase tariffs on exports of oilseeds and introduce a duty on exports of flaxseed.
Against the background of rising prices for rapeseed oil, May rapeseed futures on the European stock exchange MATIF on March 22 reached a record 994.5 € / t or 1094 $ / t. However, after traders recorded profits yesterday fell by 7% to 926.5 € / t. At the same time, August futures for rapeseed of the new harvest are traded at 770.5 € / t.
In 2021/22 MY, the European Union imported 3.7 million tons of rapeseed out of the projected 6 million tons, including 44% or 1.6 million tons from Ukraine, 34% or 1.2 million tons from Australia, 15% or 560 thousand tons from Canada . However, deliveries from Australia are much lower than expected due to rising freight prices and costs.
Winter rapeseed crops in Ukraine are in good condition after the winter, but some crops in the southern, northern and eastern regions will not be fertilized due to hostilities, which will reduce yields.
In the EU, rapeseed crops are mostly in good condition, and traders are currently focused on the weather in Canada, where there was a shortage of rainfall in the autumn. Therefore, the conditions for sowing canola in Canada will be decisive for world prices for rapeseed new crop.
