Quotations for rapeseed and canola on world exchanges are gradually increasing
The situation in the oilseed markets remains stable, as the supply of canola in the EU and Ukraine increases as the harvest progresses, reducing concerns about a possible reduction in canola production in Canada due to uneven rainfall.
Palm oil futures on the Malaysian exchange rose 3.8% to 3,787 ringgit/ or $850/t, almost matching the previous week's level. This stabilizes prices for vegetable oils, although drought in some regions of Romania and Ukraine has led to lower sunflower production forecasts.
During the week, the number of U.S. soybeans in good or excellent condition fell from 61% to 59%, compared with 58% last year. Against this background, September soybean oil futures on the Chicago Stock Exchange rose 0.8% to $1,295/t yesterday, although they were down 3.4% for the week overall.
Increased offers from Ukraine and the EU led to an increase in August rapeseed futures on the Paris MATIF by €15.5/t to €641.75/t or $651.6/t, although they were down 5.1% for the week .
Expectations regarding the unblocking of ports reduce the supply of Ukrainian rapeseed for delivery to the EU, as the cost of road transportation continues to rise and already reaches $160-180/t. Purchase prices for rapeseed in Ukraine remain at the level of $400-450/t with delivery to the Danube ports, but following global demand prices with delivery to DAP Poland, Germany have increased by $20-30/t to $560-600/t. It is more interesting for farmers to spend 50-70 $/t on delivery to the port and get quick payment (at the level of 350 $/t in a free warehouse) than to pack products in big bags, look for scarce vehicles at a price of 160-180 $/t, send them to the EU in order to receive payment at the rate of $370-400/ton with a delay of one month.
November canola futures rose 2.4% yesterday to CAD 814/t, or $633/t, after losing 3.2% for the week amid uneven rainfall in key Canadian growing regions. Dry and hot weather will dominate the Canadian prairies next week, which will reduce crop potential, especially in areas previously suffering from rainfall deficits.
