Cheaper canola in Chicago puts pressure on the price of rapeseed
After the recent precipitation in the US, the threat of drought receded and there is hope for getting a good soybean crop, so prices are falling the second day in a row.
Despite reducing the number of crops in good or excellent condition by 4% to 57%, the price of soybeans fell by 3 $/t to 365 $/t compared To the previous week, export sales of the oilseed increased from 298 thousand tons to 596 thousand tons.
In the prairies of Canada, where canola is grown, have been a powerful weekend precipitation, lowered the temperature and raised the expectations for a good harvest. Thanks to improving weather conditions and falling soy prices quotes on canola in Chicago for two days has fallen from 500 to 488 CAD/t (390 $/t).
Improving estimates of crop yield and gross collection for the European rapeseed, coupled with falling prices for canadian canola led to the reduction within two days the price of rapeseed on Euronext 6 €/t to 359,25 €/t or 418,23 $/t
In Ukraine, thanks to the warm and dry weather harvesting of rapeseed is accelerated and the yield increases as you progress in the Northern and Western regions, where at one time it took more than rain.
Now in Ukraine, 579 thsd ha (74% of planned harvest area) collected 1.5 million tonnes of canola at yields of 2.6 t/ha.
the Intensification of harvesting pressure on the price of rapeseed, however, some traders to fulfil export contracts are still willing to offer in the port rather high price.
the price of rapeseed fell:
- on the internal elevators to 11600-12100 UAH/t,
- in the port 410 to 400-405 $/t or 12250-12500 UAH/t
Processors offer 1100-12250 UAH/t with delivery to the plant.