News

Strong increase in the price of rapeseed at the end of the week in global stock exchanges

Canola Seed & Rapeseed
France
Published Mar 26, 2023

Tridge summary

Last week, oil futures prices fell again on global stock exchanges. At the beginning of the week, rapeseed on the Paris stock exchange in particular fell sharply, on Wednesday it reached the lowest price since January 20, 2021. Canadian canola, on the other hand, was the cheapest since the first decade of February 2021, but is priced PLN 217/t higher than rapeseed on Matif. On the other hand, US soybean prices, despite recent declines in prices, are quite stable. On Wednesday, American soybean listed on CBOT was more expensive than rapeseed on Matif by as much as PLN 295/t. I have already written that I do not see any logic in such behavior of prices. In recent years, rapeseed was more expensive by several hundred zlotys per ton than soybeans, and sometimes the difference was as high as PLN 2,000. PLN/t (charts below). Despite a strong recovery from the fall in rapeseed prices on Thursday and Friday, the difference is still in favor of soybeans (PLN 152/t).

Original content

As if that wasn't enough, at the end of the week the price of rapeseed oil fell below the price of palm oil, which is a bizarre situation not seen for 25 years. The recent poor performance of rapeseed prices can partly be explained by the world's record production - let me remind you that in the current season, according to the USDA, 86.31 million t, 12.28 million t more than in the previous season. The recent extension of agreements on humanitarian corridors for the export of food from Ukraine by sea has had a negative impact on prices in part. But, although the European Union annually imports about 5 million tons of rapeseed - mainly from Ukraine, Australia and Canada, why (apart from even high freight costs) EU rapeseed is cheaper than Canadian rapeseed by over PLN 200/t? Rapeseed is getting more expensive after information from Russia A strong rise in rape and grain prices on Friday was prompted by information from Russia, which may recommend companies to halt exports of ...
Source: Farmer.pl
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