Rapeseed and canola prices resumed rising amid light rainfall in Canada
The condition of crops in Canada for the week did not worsen much due to precipitation, which turned out to be less than expected, and uneven. However, the temperature remains above normal, so prices for rapeseed and rapeseed resumed growth.
The authorities of the largest Canadian provinces publish weekly reports that give the market information about the prospects for the canola and wheat harvest.
In the province of Saskatchewan, which is the main producer of canola, 10-18 mm of rain fell last week, but in some areas there was no rain at all. Most of the province has been suffering from a lack of precipitation since the beginning of June, so soil moisture reserves continue to decline: 31% are estimated as low, 66% as very low, and only 3% as normal, up from 4% a week ago.
The heat leads to drying out and early maturation of crops that are already threshed on 3% of the area, which significantly exceeds the annual average. Rain and thunderstorms are expected over the weekend, and no precipitation is forecast for the next week, and the heat wave will again exceed 25OhS.
In the province of Manitoba, precipitation was uneven, so in the central and northwestern regions 30-50% of canola crops are in good or excellent condition, and in the south and East only 5-10%.
Within 5-7 days in the provinces of Alberta and Manitoba will pass the most powerful rains, which will contribute to the filling of canola.
Canola prices after Friday's collapse since the beginning of the week increased by 0.9% to 887.9 CAD/ton or 7 710.3/ton, which is 15% higher than the previous month.
News from Canada and the delay in rapeseed harvesting in the EU and Ukraine keep rapeseed prices at a high level. On the Euronext exchange, August rapeseed futures rose by €6.25/ton yesterday to €539.5/ton or € 637.9/ton, which corresponds to the level of last week and is 4% higher than in the previous month.
In Ukraine, purchase prices for rapeseed in ports increased to UAH 19,000-19,300/ton or 6 620-630/ton, which boosted sales. Periodic rains delay harvesting, and producers are in no hurry to sell, expecting prices to rise to 19500-19600 UAH/ton.
