Oilseeds: Rising palm oil prices as a buoyant force - OPEC decisions as reinforcement The market leader in the oil seed business Palm oil has been experiencing a strong upward phase for a good 2 months. Background is a weak harvest , which should have reached its peak in Oct.19. Instead, with the help of rising exports, the previously high inventory levels are rapidly being reduced. Added to this is the future increase in the blending proportion of biofuels. Very recently, OPEC's decisions to reduce crude oil production will contribute to raising prices. The higher competition prices also pull up the prices for the scarcely supplied rapeseed market . This applies in particular to the Paris stock prices, which have the price mark of 400 € / t in the sights. In Canada, the continuing Chinese import embargo and the hindering winter mean persistently weak prices.The soy courses are experiencing a strong boost from their previous low price phase. A far below-average US harvest and the tense expectations of a better China business give hope. However, the Brazilian harvest will hit record levels in the spring of 2020. Bad experience with the US-China trade talks is dampening the price performance. Forward rates for rapeseed and soybean meal (as of 06.12.2019)
| In € / t | December-19 | Febr.20 | May-20 | Aug.-20 |
| Rapeseed, Paris | - - | 397.00 | 391.50 | 377.75 |
| Soybean meal Hamburg | 298.00 | Mar. 20: 297 | 297.00 | --- |
he recent uplift in palm oil, oilseed rape and soya is barely reflected in rising forward rates. The speculation on dwindling oilseed rape reserves at the end of the financial year leaves no discernible effect. It does not need to remain this way.
