Prices for rapeseed and canola are reduced
European rapeseed prices remain under pressure of falling prices for vegetable oil and the projections for the increase of soybean production in the next marketing year.
Since early June, the August rapeseed futures on Euronext fell from 360 €/t to 353,75 €/t or 417,4 $/ton, primarily due to the strengthening of the Euro against the dollar, from 1.16 to 1.18.
the Drought prevailing in Europe, could reduce the yield of canola, however, is that the growth of prices for new crop constrain the high carry-over stocks.
Experts Oil World reduced the forecast of rapeseed production in the EU in 2018 in comparison with the previous report by 0.5 million tons to 21.2 million tons, down 0.6 million tons lower than in 2017.
in Particular, compared with last year reduced the crop forecast:
for Poland from 2.73 to 2.2 million tons,
France – from 5.2 to 5.1 million tons,
the Baltic States – from 1.05 to 0.82 million tons.
- Germany to 4.14 million tonnes, which will be the low of the last 4 seasons,
moreover, the experts admit the further reduction of the forecasts rapeseed production in the EU in the case that dry weather will continue in the future.
In Canada, the rain passed, which favorably influenced the development of the canola crops that the prices from the beginning of June declined 3.7% to 511 CAD/t or 393,9 $/t
In Ukraine, the price of canola at the port remain stable at 405-406 $/t, but manufacturers are in no hurry contractualise because the precipitation deficit during grain ripening can lead to reduced yields. Rainfall in Ukraine in the last two months amounted to 50-60% of normal, and their distribution is very uneven.