Soy at low levels while rapeseed more expensive

The smaller soybean acreage in the US, than in March. Photo: Canva

After last week’s futures prices fell to their lowest levels in years, they are again making positive gains this week. For example, the August contract in Chicago rose $12.50 per bushel to $1,146 on Monday.

In addition to regional poor weather conditions in the US, the number of soybean hectares has also been reduced compared to March in the recent NASS report. US soybean acreage is 86.1 million; a decrease of 410,000 hectares compared to the forecast in March.

According to the rapporteurs, a relatively large amount still needs to be sown, more than in previous years. The most important growing month is August, so a lot can still happen in terms of yields. There is sufficient supply from South America, which keeps the market fairly stable.

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Rapeseed prices

Rapeseed prices have found their way up. Each day, contracts are now being concluded for more money. For August, the quotation in Paris stands at €487.50 per tonne, an increase of €10.25 compared to the end of last week. This means that the quotations are already above last year’s level.

Possible trade conflict between China and Indonesia

The smaller soybean acreage in the US, than in March, supports this market. In addition, French analyst firm Strategy Grains has reduced the EU rapeseed harvest by almost 11% to 17.8 million tonnes. Harvests are expected to be smaller in the Baltic states, Romania and Germany. A possible trade conflict between China and Indonesia is also causing unrest on the market. China may import fewer vegetable oils and look for other sources.