Rapeseed and canola prices accelerated their decline, losing the speculative gains of recent months

Yesterday on the world stock exchanges, the fall in quotations for rapeseed and canola continued, which fell by 6-9% in three days, losing the speculative growth of recent months. The reason for the collapse of prices was the improvement of the weather and soybean production forecasts in South America, the expectation of a reduction in biofuel consumption after the change of Administration in the USA, and the overbought market by speculative funds against the background of processors provided with canola and rapeseed stocks for several months.

January canola futures on the Winnipeg exchange fell 8.9% in three sessions to CAD 595/t or $425/t (-9% for the month), matching the level of two months ago.

February rapeseed futures on the Paris MATIF yesterday fell 4% to €510.75/t or $535/t (-6.3% in three days, +1% in one month, +9.4% in two months ).

The quote was not supported even by the downgrade in the forecasts of global production and stocks of soybeans in the new report of the International Grains Council (IGC). According to the IGC forecast, global soybean production will decrease by 2 million tons to 419 million tons, and ending stocks - by 4 million tons to 82 million tons due to increased consumption.

Traders are awaiting a report from Statistics Canada due out on December 5, which may lower the Canadian canola production forecast below the September forecast of 18.98 million tonnes.