Prices for canola and canola down under pressure from the soybean market
a Decline in prices for soybeans in Chicago caused by the statement of the Minister of agriculture about the low probability of solving trade disputes during a meeting of the presidents of the United States and China, has affected the market of rapeseed and canola.
Traders expect the final reports on crops in the U.S. and Canada that will determine the future price trends. The sowing area of soybeans in the U.S. can be much less than forecast by USDA in may, 84.6 million acres last year to 89.2 million acres.
the forecast by Statistics Canada, in 2019/20 MG acreage of canola as a result of trade dispute with China will decrease compared to the previous estimate from 21.32 million acres to 19.8-21,35 million acres versus 22.8 million acres last season. While the areas under barley will increase compared to the previous estimate from 7.16 million acres to 7-7,5 million acres, which exceeds the period of 6.49 million acres. Irregular rainfall that took place on the canadian Prairie after a long drought, hampering the development of the canola crops and can decrease yields.
prices of canola in Chicago yesterday fell 2.6% to 455,7 CAD/t or 346 $/t
On Euronext quotes on rape also decreased by 1,25 €/t to 366,25 €/t to 415,9 $/t
Heat in France, which brought dry, hot air from the Sahara, can cause damage to the crops of wheat and canola. On Monday, the temperature in Paris had risen to 34o, and during the week will rise even higher. Soon the country will begin the harvest, but the heat can reduce yields. In addition, 20% of the country's departments have already introduced restrictions on the irrigation of fields.
