Weaker soybean prices weigh on rapeseed market
In Germany, UFOP reports that “ample global soybean supply and an increase in soybean acreage in the US for the upcoming 2017 crop put downward pressure on Chicago soybean prices. Rapeseed in Paris also flagged, but remained at the previous year’s level thanks to shaky harvest outlooks.”
The nearby for soybean in Chicago dropped to USD 9.26 per bushel, the equivalent of EUR 304 per tonne, this week, closing at its lowest level since April 2016. Ample global supply based on the bumper crops in South America at the beginning of the year weighed on futures prices. Moreover, the US soybean area for the upcoming 2017 crop is estimated to clearly exceed 36 million hectares, up around 6 per cent from the previous year. This expansion caused additional pressure. According to Agrarmarkt Informations-Gesellschaft mbH (AMI), rapeseed prices in Paris could not quite escape the impact of the reference prices from overseas. However, the price drop was less sharp. Following the January 2017 highs, price quotes for rapeseed slid around 17 per cent to currently EUR 356 per tonne, which is, however, approximately the previous year’s level. In view of the shaky harvest outlook for the 2017 crop of around 21 million tonnes in the EU-28 to date, the foreseeably tight rapeseed supply and demand balance in the European Union will probably lend support to prices.
Category: Fuels
