Producer prices for rapeseed recently fell sharply. The old harvest is currently valued at € 336 / ton, for goods ex harvest 2020 the average demand is € 332 / ton, a decrease of € 22 / ton. This price level was last traded in July 2018. The reason for the sharp drop in prices is the coronavirus pandemic and the associated recession fears. The readiness to sell ex harvest 2020 is virtually non-existent. With old goods, producers have been sold out for weeks. In addition, oil mills have long since met their connection requirements. New business is therefore the exception. The growers are currently more busy tilling the fields.
There is currently a large need to buy front goods on the German rapeseed meal market. However, this is only available to a limited extent. So there is a clear excess demand that supports prices. Strong price increases are expected on the soybean meal market in the coming days. Falling crude oil prices restrict biodiesel and ethanol production, which leads to a decline in grain and oilseed processing and thus to a lower supply of grist.Oil mills report hamster purchases by the compound feed companies for rapeseed and soybean meal. In addition, the supply is currently limited because shipments from Argentina arrive with a delay and overall less soybean meal arrives on the European market.
Source
HANSA Terminhandel
