Higher oilseed prices
There are concerns on the international stage about the unrest in Ukraine in addition to reports that there will be no extension of the grain deal, which expires in the second half of July. This is one of the reasons that prices of commodities are experiencing upward pressure on international markets.
In addition, prices for soybeans moved up on the Chicago futures market late last week due to soybean oil prices rising sharply. There is strong demand from the biodiesel sector for this oil and several end-users in the food industry may have experienced shortages.
El Niño could affect Brazilian soy crop
Demand for Brazilian soy is increasing as supply increases. According to the association of oilseed exporters, Anec, Brazilian exports this June will amount to more than 13 million tonnes. In comparison, last year the country exported barely 10 million tonnes of soybeans in the same month. In the longer term, the El Niño weather phenomenon could affect the next Brazilian crop.
Eyes on US soy plantings
Eyes are currently focused on plantings in the US, where most of the soybean acreage has been sown. By the reference date of 11 June, 96% of the soybean area had been sown. The 5-year average around the same reference date is 86%. Precipitation is expected in most US regions where soybeans are grown in the coming week, which will benefit the crop.
Rapeseed prices hitch a ride with soybeans
Rapeseed prices are also rising. These are mainly piggie-backing a ride with the higher quotations of soybeans. The first expiring contract for rapeseed on the futures market in Paris was €440 per tonne on Monday 12 June – 4% higher than was quoted a week earlier – bringing the quote to the level of the end of April.
