Wheat, corn and canola prices in Europe continue to fall under pressure from a strong supply

Soybean

Lithuania

Published Mar 23, 2023

Tridge summary

Yesterday on the European markets, the fall in quotations for agricultural crops continued, due to a decrease in demand and a difficult situation in the banking industry, due to which traders switched from short positions on grain to other assets. The leader of the decline was rapeseed, whose May futures on Euronext, after falling by 3.2% on Monday and by 2.9% on Tuesday, yesterday fell by another 2.4% to a 2-year low of €430.5/t or 469 $/t, losing 30% in a month. The reason for this was a sharp increase in the import of rapeseed against the background of a decrease in vegetable oil prices. In the 2022/23 FY as of March 19, the EU increased rapeseed imports compared to the same period of the previous season by 54% from 3.81 to 5.87 million tons thanks to active supplies from Ukraine and Australia. At the same time, the import of soybeans for the indicated period decreased by 14.6% to 8.45 million tons, and of soybean meal by 4.6% from 11.78 to 11.24 million tons. Against the background of increased imports, May corn futures for week fell by 8.5% to €244.75/t or $266.7/t, losing 16% for the month.

Original content

Yesterday on the European markets, the fall in quotations for agricultural crops continued, due to a decrease in demand and a difficult situation in the banking industry, due to which traders switched from short positions on grain to other assets. The leader of the decline was rapeseed, whose May futures on Euronext, after falling by 3.2% on Monday and by 2.9% on Tuesday, yesterday fell by another 2.4% to a 2-year low of €430.5/t or 469 $/t, losing 30% in a month. The reason for this was a sharp increase in the import of rapeseed against the background of a decrease in vegetable oil prices. In the 2022/23 FY as of March 19, the EU increased rapeseed imports compared to the same period of the previous season by 54% from 3.81 to 5.87 million tons thanks to active supplies from Ukraine and Australia. At the same time, the import of soybeans for the specified period decreased by 14.6% to 8.45 million tons, and soybean meal - by 4.6% from 11.78 to 11.24 million tons. Against the ...

Source: Graintrade