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Michael

Nov 18, 2024

Euronext: Rapeseed Prices Rebound After Losing Streak

Euronext: Rapeseed Prices Rebound After Losing Streak

Euronext: Rapeseed Prices Rebound After Losing Streak

Paris, November 18 – Rapeseed prices on the Euronext recovered on Friday following three consecutive days of losses. The February contract gained €8.75, closing at €539.25/t, its highest level in 18 months. This modest weekly gain of 0.5% (€2.75) marked the ninth consecutive week of price increases, though the momentum has slowed compared to previous weeks.

Global Markets Lend Support to Rapeseed Prices

The recovery of soybean and canola markets contributed to stabilising rapeseed prices. In Chicago, the January soybean contract rose by 11 cents to settle at 998.5 cents/bu (€348/t), reducing the week’s losses to 3.1%. Canola prices on the ICE in Winnipeg surged by 3%, driven by increased demand from the U.S. biodiesel industry.

According to the Canadian Grain Commission, Canada’s rapeseed exports reached 264,000 tons on November 10. This brings total exports for the current season to 3.36 million tons—nearly double the volume seen in the same period last year. However, analysts caution that high export volumes combined with domestic solid demand could strain Canada’s supplies later in the season.

China’s Trade Policies Boost Market Sentiment

The Chinese Ministry of Finance announced plans to reduce export tax rebates on certain raw materials, including processed vegetable oils, effective December 1. This policy is expected to curb exports of used cooking oil from China to the U.S., potentially boosting domestic demand for soybean and rapeseed products in North America.

This move was positively received by international markets and further supported the recovery of rapeseed prices in Paris. As a result of these developments, market participants anticipate stronger demand for oilseeds.

U.S. Soybean Crushing Exceeds Expectations

The National Oilseed Processors Association (NOPA) reported that U.S. soybean crushing reached 199.96 million bushels in October, exceeding forecasts of 196.84 million bushels and representing a 5.37% increase year-over-year. Soybean oil stocks fell to 1.069 billion pounds, below expectations and the previous year’s levels.

USDA: Soybean Exports Hit Five-Week Low

According to the USDA, U.S. soybean exports totalled 1.555 million tons in the week ending November 7, marking a five-week low. However, the figure was within the forecast range of 1 to 2.2 million tons. China accounted for the largest share with 1.18 million tons, followed by Egypt with 127,700 tons. Exports of soybean meal and oil also declined but remained within expectations.

This report highlights how global economic and policy shifts shape developments in oilseed markets and their derivatives.
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