Falling oil prices increase pressure on oilseed markets

Over the past six sessions, oil prices have fallen 5% to their lowest level since May 24, 2021, amid an increase in the spread of coronavirus and a possible decline in fuel demand. This increases pressure on rapeseed and palm oil prices, which immediately react to changes in oil prices.

Yesterday, October Brent crude futures fell на 1.62/barrel to 6 67.33/barrel, and WTI crude futures fell 2 2.2/barrel to.64.2/barrel, losing 6% and 7.5% over the week, respectively.

According to the Energy Information Administration, US oil reserves fell to the lowest level since January 2020 of 435.5 million barrels, while gasoline reserves increased by 696 thousand barrels to 228.2 million barrels, although analysts expected them to decrease by 1.7 million barrels, indicating a drop in demand.

October palm oil futures on the Malaysian stock exchange fell 2.4% yesterday to 4,301 ringgit/ton, or.1,015/ton, losing 4.9% over the week.

November canola futures on the Winnipeg Stock Exchange fell 2% yesterday to 898.7 CAD/ton or 7 707/ton under pressure from the strengthening of the US dollar against the Canadian dollar.

Following them, November rapeseed futures on the European stock exchange also fell by 2 €/ton to 572.75 €/ton or 668.8 € /ton.

On the Chicago Stock Exchange, December soybean oil futures fell 1.8% to 1 1,342/ton.

Quotes for rapeseed and canola in the near future will be supported by uncertainty with the harvest in Canada, the forecasts of which most agencies lowered from 20 to 15-17 million tons, and special pessimists - even to 12 million tons.