Global rapeseed maintains strong premium over soybeans

Published 2024년 10월 23일

Tridge summary

Paris rapeseed futures have surpassed Chicago soyabeans futures in price, with the price gap reaching its highest since mid-2022 due to lower harvest estimates and increased demand. The average price ratio between the two commodities has risen to 1.39 from 1.12 since May 2022, driven by expected lower global production of rapeseed, especially in the UK and EU-27. Additionally, the price gap could be further widened by increased demand from China due to Canada's temporary remission of tariffs on certain Chinese imported goods.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Sign up to receive the Weekly Market Report and Grain Market Daily from AHDB. In recent weeks, Paris rapeseed futures (Nov-24) have kept a strong premium over Chicago soyabeans futures (Nov-24), even though both have seen gains. The strong support for rapeseed is largely driven by fundamental supply and demand dynamics, including lower harvest estimates this year and increased demand. Typically, rapeseed and soyabeans prices move in the same direction and fluctuate within a certain range. However, the sharp increase in rapeseed prices recently has further widened the price gap between the two crops. From July to yesterday’s close, Nov-24 Paris rapeseed futures gained £19.33/t, while Nov-24 Chicago soyabeans futures lost £40.32/t. The price spread between Nov-24 Paris rapeseed futures and Nov-24 Chicago soyabeans futures reached £144.69/t yesterday, the highest level since mid-2022. This season (July-to-date), the average price ratio between the two commodities has risen to 1.39, ...

Source: Ahdb