In Germany, UFOP reports that due to the lower harvest estimates for key rapeseed producing countries and prospects of brisk demand from China, asking prices for rapeseed are poised to exceed previous expectations. Prospects of a weaker rapeseed harvest in the EU-28 are gradually having repercussions on prices, leading to firming prices in Paris. Prices for soybeans in Chicago and for palm oil in Kuala Lumpur recently headed downward, but rapeseed prices have been supported by the weaker euro. The surge at the futures exchange is also reflected in wholesale prices. Bids to producers have also been raised recently. There is virtually no trade in old-crop rapeseed. Consequently, the chances are good that rapeseed prices will increase. According to information published by Agrarmarkt-Informations Gesellschaft, rapeseed is likely to grow tight, on the one hand, because of lowered crop forecasts in Europe, Australia and Canada, and on the other hand, because of the escalating trade conflict between China and the US.
Considering the import duties the Chinese government announced it would impose on US soybeans, it is doubtful whether China will be able to cover its demand for oilseeds with soybeans from Brazil, because around one third of Brazilian soybean production is needed in Brazil’s domestic meat sector. To ensure protein supply nevertheless, China could increasingly focus on rapeseed meal or rapeseed. As a consequence, more produce from the EU-28 could be marketed in China.
Category: Producer News