The catastrophic fall in rapeseed and canola prices continues on world exchanges

Published 2024년 11월 28일

Tridge summary

Global stock markets are witnessing a notable drop in canola prices, driven by declining soybean oil prices and the threat of new US tariffs on Canadian canola. This has led to a significant sell-off in futures, with January canola futures on the Winnipeg exchange and February futures on the Paris MATIF both experiencing declines. The market is also pressured by uncertainties surrounding the US biofuels tax credit program, which is crucial for Canadian canola oil sales. Efforts are underway to exempt Canadian canola from potential tariffs and maintain biofuel tax incentives. An upcoming Statistics Canada report may influence canola prices if it revises the harvest estimate downward.

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

Original content

Global stock markets continue to experience a catastrophic fall in canola and canola prices, driven by lower soybean oil prices and the new US administration's plans to impose tariffs on canola and oil from Canada. This is reported by analysts of the GrainTrade electronic grain exchange. Substantial speculative overbought in futures was met with a sharp sell-off in contracts triggered by the possible imposition of tariffs. January canola futures on the Winnipeg exchange fell a further 2.6% to CAD565/t or $403/t yesterday (-14.3% since November 15), adding pressure to EU quotes. February canola futures on the Paris MATIF yesterday fell 2.8% to €493/t or $520/t (-10% over 10 days), which will weigh on European farmers who have held back sales in anticipation of higher prices. In Ukraine, most farmers sold out rapeseed at high prices, so now its stocks are minimal. Declining soybean oil prices are also putting pressure on canola quotes. December soybean oil futures on the Chicago ...

Source: Agrotimes