Quotations for rape recover against the background of falling euro exchange rate
The policy of the world's central banks to curb inflation has led to a decline in the euro to a 20-year low, which supported quotations for rapeseed on the exchange in Paris, which rose by 5.1% during the past week.
The increase in geopolitical tensions due to the mobilization announced in the Russian Federation and Putin's nuclear threats increases the pressure on the euro and the demand for dollars, as a reliable asset in conditions of uncertainty. The ISE index, which shows the dynamics of the dollar against six world currencies - the euro, the Swiss franc, the yen, the Canadian dollar, the pound sterling and the Swiss krona, rose to a record 112 points. The euro fell 5.4% against the dollar for the week to a 20-year low of $0.968/€, while the pound sterling fell to a 37-year low of $1.102/£.
The dollar exchange rate is supported by expectations of a strengthening of the Fed's policy and a further global recession caused by the escalation of the Russian Federation's war against Ukraine.
During the week, November canola futures on the Paris MATIF rose 5.1% to €606.75/t or $584.85/t, but the dollar price fell 0.7%. The quotation supports the increase in the price of canola and the risks of reduced supplies from Ukraine due to Russia's reluctance to continue the operation of grain corridors after November.
November canola futures on the Winnipeg exchange rose 3.2% on the week to CAD 818.5/t, or $600/t, while the Canadian dollar fell 2.9% against the US dollar.
In Ukraine, the purchase prices for rapeseed in Black Sea ports remain at the level of UAH 17,200-17,300/t or $470-485/t. Traders are actively buying rapeseed, but with delivery only until early November, when grain corridors expire. The significant difference between the purchase price in Ukraine and the selling price in the EU brings good profits to traders, so in the near future they will offer additional bonuses for fast deliveries.
Lower prices for oil, soybeans and soybean complex increase the pressure on global rapeseed prices, but the approach of winter and uncertainty with fuel in Europe will limit the decline in quotations.
