Prices for soybeans reached a 4-month high, and for rapeseed-again updated the record
This week, rapeseed prices on Paris ' Euronext rose to a record high, while soybean prices hit a 4-month high on concerns about a possible reduction in the harvest in South America due to a lack of precipitation in Argentina and southern Brazil.
February rapeseed futures rose 10 €/ton yesterday to a record 756.75 €/ton or 8 857.3/ton, adding 14.2% in December amid a shortage of supply and rising rapeseed oil prices. Gas price rise in Europe to 2 2,180 / 1,000 m3 increases the demand for biofuels, which contributes to higher prices for rapeseed oil and rapeseed.
At the same time, January canola futures on the Winnipeg Stock Exchange since the beginning of the week fell by 10 CAD/ton to 1010 CAD/ton or 7 787/ton, losing 1.9% of the price for the month.
Soybean futures on the Chicago Stock Exchange yesterday crossed a 4-month high to сяг 492/ton amid drought and heat in South America, which may reduce the soybean harvest. Forecasters believe that the rains that will pass in the near future will not be able to improve the condition of crops in southern Brazil and Argentina, which are the world's largest soybean exporters.
According to Jake Henley, Managing Director of Teucrium Trading, "both countries are dominated by the La Niña phenomenon, which usually causes drought, and it is obvious that it will continue throughout the winter. No matter how strong the La Niña phenomenon may be, its presence, for obvious reasons, keeps trade in suspense."
A reduction in the soybean crop in South America may reduce supplies to the global market and increase export demand for soybeans in the United States.
At the same time, Christian Russo, an expert at the Rosario Grain Exchange, said that the drought caused by the La Niña phenomenon will disappear by next month, Reuters reports.
The US Department of Agriculture reported in a separate report that only 811.5 thousand tons of soybeans were sold in the week of December 10-16, which is the minimum of the current season. In general, in the season, export sales amounted to 40.9 million tons, which is 14 million tons lower than last year, although the export forecast for the current season was reduced by only 6 million tons, and production increased by 6 million tons.
Therefore, in January, competition between American and Brazilian soybeans for the Chinese market will increase, which now prefers Brazilian soybeans due to the higher protein content and due to attempts to reduce purchases in the United States for political reasons.
