Prices for rapeseed growing on a stronger Euro and higher prices for palm oil

2020-07-09 12:04:38
Machine translation
Prices for rapeseed growing on a stronger Euro and higher prices for palm oil

Yesterday the price of rapeseed on Euronext rose sharply on the background of a strengthening Euro, lower crop forecasts in France and the rise in price of palm oil.


In the first official report on harvest 2020 Ministry of agriculture of France estimated rapeseed production to 3.37 million tons, which is 3.7% below last year's harvest and 29.5% - average 5-year average. According to experts AHDB (the Council for the development of agriculture and horticulture) acreage of oilseed rape in the UK will increase to 387 thousand hectares, which is still 26% lower than in the previous year.


Due to the reduction of rapeseed production in the EU for three seasons in a row, imports of rapeseed in 2019/20 MG increased by 42% to 6 million tonnes More oilseed rape in the EU put Ukraine (2.87 million tons), Canada (2 million tonnes) and Australia (0,94 million tons). Simultaneously, the import of palm oil in the EU decreased by 12% due to lower demand from the biodiesel industry.


Futures on palm oil in Malaysia yesterday rose 2% to 2407 Ringgits/t or 564 $/t waiting for the report of production, exports and stockpiles in June and on the background of rise in price of soybean oil.


According to preliminary estimates of experts by Reuters, in June palm oil stocks in Malaysia fell compared to may by 5% to 1.94 mln t, exports rose by 20.6% to 1.65 million t, and production by 8% to highest since October 2019. the level of 1.78 million tons.


After purchase by the EU of the party of Argentine soybean oil prices rose to 675-680 $/t FOB Up River.


the August rapeseed futures on Euronext rose yesterday at 3.25 €/t to a maximum in the month of February the level of 385 €/t, and due to the strengthening of the Euro against 1,1365 $/€, the dollar price rose in the $7/ton to 437,5 $/t


the price of rapeseed oil in the Netherlands after last week drop recovered to 770 €/MT FOB.


Yesterday, the Egyptian GASC cancelled its first international tender for purchase of vegetable oils in 2020/21 MG through high bid prices, which for soybean oil has exceeded 746 $/t CFR, and for sunflower – 774 $/t CFR. It is confirmed that buyers are not willing to buy products at such high prices.

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