Rapeseed Prices at Euronext Start the Week with Gains
Rapeseed Prices at Euronext Start the Week with Gains
Rapeseed prices at Euronext began the week with moderate gains. The most-traded May future rose by €2.25 to close at €532/t. The market was supported by sharply rising Canola prices in Canada. At the ICE in Winnipeg, the front-month March contract surged by CAD 15.90 to CAD 631.90/t. Trading at the CBoT remained inactive due to a public holiday in the United States.Market Influences and Developments
- Support from Rising Canola Prices:The strong increase in Canola prices provided significant support to the European rapeseed market. Buyers speculated that immediate tariff hikes on Canadian imports to the U.S. might not materialize. However, President Donald Trump announced on his first day in office that 25% tariffs on Canadian and Mexican products would be imposed starting February 1. This move could disrupt Canadian Canola oil exports to the U.S., redirecting demand to U.S. soybean oil.
- Delays in Brazil's Soybean Harvest:According to AgRural, only 1.7% of Brazil's soybean crop had been harvested by last Thursday, the slowest pace for this time of year since the 2020/21 season. Excessive rainfall in Mato Grosso, Brazil's top soybean-producing state, has significantly delayed harvest activities.
- Palm Oil Prices Recovering:Malaysian palm oil futures rose for the second consecutive session. The market was supported by stronger vegetable oil prices at the Dalian Commodity Exchange in China. However, with January stock levels in Malaysia expected to rise—after hitting a 19-month low in December—further upside for palm oil prices may remain limited.
Outlook
Canola market developments remain a critical factor for price movements in Europe. If U.S. tariffs are implemented as planned, Canadian exports could face challenges, potentially impacting European rapeseed markets. Meanwhile, delays in Brazil's soybean harvest and a recovery in palm oil prices could increase volatility across oilseed markets.Click here to reach our trading platform CMBroker
