Rapeseed prices remain high despite active sowing in Canada and increased production in the EU

2021-06-01 12:02:04
Machine translation
Rapeseed prices remain high despite active sowing in Canada and increased production in the EU

Despite the strong volatility of oilseed markets, high rates of canola sowing in Canada and favorable weather for rapeseed crops in the EU and Ukraine, rapeseed and canola prices remained stable last week.

 

Strategie Grains experts in a new report increased the forecast of rapeseed production in the EU in 2021/22 MG from 16.78 to 16.82 million tons, which is 2.2% higher than the 16.45 million tons collected last year.

 

August rapeseed futures on Paris ' Euronext fell 4.5 €/ton yesterday to the previous month's level of 515.25 €/ton or 6 630.2/ton, losing 0.5% of the price in a week.

 

Rapeseed prices remain at a high level, as oilseed production in the EU will almost correspond to last year's level, so you will have to import more than 6 million tons of rapeseed, and the canola harvest in Canada and rapeseed in Ukraine this year may even decrease compared to the previous season.

 

In Ukraine, cold weather in April and may delayed the development of rapeseed crops, so the yield will not be too high, even despite heavy precipitation in May.

 

Forward prices for rapeseed in Ukraine remain at 6 620-630/ton for deliveries to the port in July – August. A significant number of processors plan to increase the volume of rapeseed processing due to the early end of the sunflower processing season.

 

In Canada, due to dry weather in April and may, canola sowing rates are ahead of the annual average, and heavy rains in recent weeks improve the prospects for the harvest. As of May 25, spring crops in the province of Saskatchewan are sown in 86% of the planned area, and in the province of Alberta – 89.8%, compared with 77% and 77.5%, respectively, on average over 5 years.

 

November canola futures continue to rise in price, and during the week rose from 695 CAD/ton to 727.4 CAD/ton or 6 603.7/ton, while July consistently remain at a high level of 900 CAD/ton or 7 747/ton. quotes support the decline of the Canadian dollar against the US by 4.5%, starting in April.

 

The weather remains a determining factor affecting the prices of rapeseed and canola, so high market volatility will continue in the near future.

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