The downward trend in rapeseed was interrupted yesterday. The front month increased by 2.25 euros/t to 616.25 euros/t over the course of the day. As the Association of the Oilseed Processing Industry announced at EuroTier in Hanover, oilseed processing in Germany will be around 1 million tons lower this year. The most obvious is the tour of the association in rapeseed processing with an estimated 800,000 tons, which can also be attributed to the lower harvest in 2021 and the suspended supply chains after the start of the war in Ukraine. In addition, there are logistical problems, which became particularly apparent during the summer months. According to the association "German-Ukrainian Agricultural Policy Dialogue", the sowing of winter oilseed rape in Ukraine has been completed in all regions. The area under cultivation is likely to be similar to that recently forecast for Germany - around 1 million hectares of cultivation are expected here. Soybeans on the CBoT corrected very sharply yesterday. Profit-taking in soybean oil also weighed on beans and soybean meal. In addition, the crude oil markets were also in the red yesterday, with Brent and WTI each losing more than 2 US dollars a barrel.The prospect of heavy rainfall in the most important growing regions in Brazil also had a negative effect. According to consistent reports, the farmers in the South American country have already pre-contracted a large part of their field stocks. In parts, more than 60 percent of the expected harvest has already been marketed.
Source
VR AGRICULTURAL
