Canola prices have updated another record, and rapeseed quotes are declining
Rising oil prices in recent weeks have led to an increase in the cost of agricultural products used in the production of biofuels. Palm oil prices updated the record last week, rapeseed futures - earlier this week, and canola prices yesterday reached a record 1000 CAD/ton.
Lower oil prices have already led to an adjustment in palm oil prices, December futures for which reached a record 5,071 ringgit/t or.1,222/t on October 20, and at the end of the week fell to 4,929 ringgit/t or. 1,188/t on the back of slowing exports. During October 1-25, Malaysia exported 1.2 million tons of palm oil, which is 8.5% lower than in the same period of September.
November rapeseed futures on Paris Euronext reached a record 700 €/t or 8 812/t, but their term ran out, so traders began trading February futures, which reached 680 €/t on October 25, and then fell to 669.25 €/t or 7 781 / t.
November canola futures on the Winnipeg Stock Exchange rose all week and even reached 1035 CAD/t yesterday, but ended trading at 996.9 CAD/t or 8 807/t, showing an increase of 1.3% for the day and 11.3% for the month.
The canola market was supported by data on an increase in export and processing volumes. According to Oil World estimates, Canada in September increased the volume of canola processing by 20% compared to August from 662 to 778 thousand tons, which is 1% lower than in September 2020 in 786 thousand tons. in addition, canola exports in the period October 1-17 increased to 550 thousand tons.
From October to September 2020/21 MG, the volume of oilseed processing in Canada reached 11.86 million tons (11.9 million tons in 2019/20 MG), including canola processing increased to 10.23 million tons (10.14 million tons in 2019/20 MG).
Warm weather forecasts and Gazprom's decision to fill gas storage facilities in the EU lower gas prices, which increases pressure on oil prices, and in the near future will lead to an adjustment in prices for "energy" agricultural crops used in the production of biofuels.