Rape prices in Paris fell by another 2.4%

After a tumultuous two-week rise in rapeseed prices in Paris by 10%, analysts had expected a 2-3% decline, but over the last two sessions, quotations fell by 5.3% under the pressure of falling oil prices, as well as soybean and palm oil.

 

Investment funds actively sold contracts, locking in profits, but the general decline in the oil complex strengthened the technical selling of futures.

 

Yesterday, August rape futures fell by 2.4% to €482/t or $521.5/t (+3.6% for the month), and November - by 2.3% to €490.25/t or $530.4/t (+2.9%).

 

The price pressure was compounded by a drop in oil prices on hopes of a de-escalation in the Middle East after the election of a new president in Iran, who has said he intends to improve relations with the West and push for the lifting of US sanctions.

 

September Brent oil futures fell 3.3% to $84.6/barrel in 4 sessions, but still remain 4.1% more expensive than a month ago.

 

On the Winnipeg exchange, November canola futures yesterday fell 2.5% to CAD 632/t or $464/t (-3.3% for the month).

 

In Ukraine, export purchase prices for rapeseed with delivery to Black Sea ports fell by 300-500 UAH/t yesterday to 22,200-22,500 UAH/t or $475-485/t, and may drop again today.

 

Demand prices for rapeseed for delivery to the EU also fell by 10-20 €/t to 465-480 €/t, but traders are offering higher prices for deliveries in October-November.

 

In the regions where there was no significant precipitation in June, intensive drying of crops is taking place against the background of intense heat, therefore the moisture content of rapeseed at harvest is only 4-6%, in addition, low grain quality and oil content are observed.