The price of rapeseed fell after the EU import duties on biodiesel
After the adoption of the European Commission's long-awaited decision on the reduction of duty on imports of biodiesel, last November rapeseed futures in Paris fell by 4.75 €/t to 365 €/t, which was the lowest level of the last 4 weeks.
According to the decision, until 28 September the tariff will be reduced to 4.5 to 8.1%. Now the tariff of 22-25,7% that was introduced for last year's decision by the world trade organization adopted in response to a complaint by the EU about illegal subsidies Argentina to export biodiesel produced from vegetable oils.
strengthening of the Euro to 1,206 €/$ offset the fall in the dollar prices of European rapeseed, so the price remained at the level of 440 $/T. EUR continues to rise amid expectations the European Central Bank regarding the growth in 2017 the economy of the Eurozone from June to 1.9% to 2.2%.
the increase of the Euro will weaken the competitiveness of European goods and adversely affect the export activity of the EU.
Reduction in import duties on Argentine biodiesel will put pressure on the price of soybean oil and soybeans in the EU.
In Chicago the price of canola has also declined on the news about improving productivity in Canada relative to previous forecasts due to the strengthening of the canadian dollar against the U.S. with 1,25 to 1.206 CAD/ USD. During the week the price of canola fell from 502 to 492 CAD/t or 407,9 $/t