A 2.1% increase in rapeseed futures in Paris will support prices in Ukraine

Against the background of unfavorable weather conditions, the Strategie Grains agency lowered its forecasts for the harvest of oil crops in the EU in 2024, in particular, rapeseed - from 17.94 to 17.8 million tons, soybeans - from 3.04 to 2.99 million tons, sunflower - from 10 .72 to 10.49 million tons.

In northwestern Europe, rains are continuing, delaying rapeseed harvesting, but processors still have sufficient stocks of the old crop. Vegetable oil prices are rising amid a strengthening biofuels market and declining US soybean crop potential, supporting canola quotes.

On the Paris MATIF, August rapeseed futures yesterday rose by 2.1% to €487.5/t or $523/t (+5.5% for the week), approaching the high reached at the end of May.

On the Winnipeg exchange, November canola futures rose 1.8% on the week to CAD 627/t, or $456/t, following gains in Chicago soybean prices, but were held back by improved prairie weather.

In the current season, Canada exported 6 million tons of canola, which is significantly lower than the figure of the previous season - 7.5 million tons.

In Ukraine, rapeseed is just beginning to be harvested, so purchase prices are rising against the background of a shortage of supplies.

During the week, export prices for rapeseed delivered to Black Sea ports rose by UAH 300-500/t to UAH 20,300-20,700/t or $440-460/t, and at domestic elevators to UAH 18,500-19,800/t EXW. Demand prices for deliveries to Romania and the Czech Republic increased by €10/t to €440-450/t, and to Germany - to €450-460/t.

Abnormal heat prevails in the east of Ukraine and the south-west of the Russian Federation, that is, in the main regions of sunflower cultivation, but the precipitation predicted for the next few days will reduce the air temperature and stress for plants.