The price of rapeseed under pressure offers cheap soy
this week once again ended inconclusively negotiations on trade relations between the US and China, which led to a further drop in futures for soybeans in Chicago to the level 307$/t. Prices for soybeans remain under pressure of increased production forecasts from some analytical agencies ahead of next week balance forecasts from the USDA. Analysts Informa Economics increased its forecast of soybean yield in the United States to 52.9 bushels/acre, 1.3 bushels/acre more than the August USDA forecast and the assessment of the gross harvest increased to a record 127 million tons, the Experts of the brokerage company Allendale, Inc estimate soybean yields in the United States at 52.2 bushels/acre, and the gross yield at the level of 126.1 m t (against of 124.8 million tons USDA).
also on the soybean market under pressure from the forecast reduction in imports of soybeans by China, due to lower demand for soybean meal from pork producers who have suffered from swine flu.
the Reduction of rapeseed production in the EU through the arid weather conditions became the reason of growth of prices for rapeseed to 380 €/t, but refiners prefer cheaper soybeans. According to forecasts, imports of soybeans into the EU this season will increase by 1.5 million tonnes to 15.2 million tonnes.
- the price of rapeseed on Euronext yesterday again decreased by 3 €/t to 372 €/t or 432,8 $/t
European traders already do not take into account forecasts of reduction of production of canola in Canada and lower than expected canola stocks at the level of 2.39 million tonnes, as reported by Statistics Canada.
Futures on canola in Chicago for the past three days rose 3 498,8 USD to CAD/t or 380 $/ton, after the disclosure of the lower temperatures and possible frosts in Saskatchewan, which can damage the crop and to suspend harvesting canola.
Ukraine since the beginning of the year has already exported more than 1 million tonnes of canola, and plans to export at least 1.3 million tons, but the demand for canola continues to fall due to the reduction in the number of market participants who are purchasing. Purchase prices for Ukrainian rapeseed remain at 420-422 $/t or 13800-13900 UAH/t with delivery to the port, the demand from recyclers is almost absent, because they started to take soy and sunflower of a new crop.