Rapeseed and canola prices decline amid precipitation in Canada

Yesterday's drop in oil and soybean prices on stock exchanges accelerated the collapse of rapeseed futures, which on the Paris Stock Exchange lost 6% in two days following a decline in canola prices, which have also fallen by 7% since Friday.

Forecasts of lower temperatures after the heat wave, as well as forecasts of light rains in the Canadian Prairies for the next 7 days, were the main factor in cooling prices for rapeseed and rapeseed, but the level of precipitation, especially in the western regions, will not be enough to dramatically improve the condition of crops against the background of increasing precipitation deficit.

August rapeseed futures on Euronext have fallen 30.75 € / ton to 505.75 €/ton, or 5 598.1/ton, since Friday, returning to the level it was two weeks ago.

November canola futures on the Chicago Stock Exchange fell 55 CAD/t to 775 CAD/t, or 6 621.6/t, but overall rose 4.7% in two weeks.

The approach of rapeseed harvesting in Europe and Ukraine increases pressure on rapeseed prices, while canola quotes remain at a high level, and now exceed the level of prices for European rapeseed by 2 20/ton, which has never happened.

If last week in Ukraine there was a rapid increase in purchase prices for rapeseed, then from Monday prices are greatly reduced following stock quotes and have already lost about 500-600 UAH/ton and decreased to the level of 18000-18200 UAH/ton or 580-590 $/ton.

 Data on rapeseed yields and quality in Ukraine and the EU as harvesting accelerates will be the main factors of pressure on the price in the near future, but dry weather on canola crops in Canada, as well as on soybean crops in the United States, will strongly support oilseed prices