Rapeseed enjoys competitive price edge over wheat: report
In Germany, the trade assocaitino UFOP reports forward-contract price gap between wheat and rapeseed currently amounts to around EUR 220 per tonne, virtually reaching the seasonal high.
“The gap between forward-contract prices of soft wheat and rapeseed from the 2017 crop has increasingly widened in eastern Germany over the past several months,” the association noted.
“Whereas wheat prices declined, new-crop rapeseed went up. The main reason was the difference in global availability in 2016/17, which also affects the upcoming season. World 2016/17 wheat production is expected to hit a record at just under 750 million tonnes. By contrast, production of rapeseed will be insufficient to cover expected demand. This shortfall will come at the expense of stocks, which are forecast to decrease by more than 5 per cent. According to information published by Agrarmarkt Informationsgesellschaft (AMI), bids for new-crop soft wheat average EUR 150 per tonne ex farm, which is the same level as for spot produce because availability continues to be ample. The current tight supply of rapeseed also has an impact on the level of new-crop prices. The current asking price for rapeseed is at EUR 371 per tonne ex farm. This is EUR 34 per tonne less than for spot material on expectations of a more comfortable supply in 2017/18, but nevertheless up EUR 50 on the same time last year.”
Category: Fuels
