The significant drop in price on the rapeseed market on the Paris derivatives exchange Matif had led many farmers to offer more rapeseed from both the old and the next harvest last week. At the same time the oil mills held back with purchases; after all, they supposedly have good cover for the remainder of the year. The cash market continues to grapple with the problems of the poor transport situation. The rainy weather now gives hope that the rivers will carry more water again and that the low water surcharges will no longer apply.
Since the end of last week, the downward trend in Paris has come to an end, which will probably mean that the already small quantities on the physical market will be held back by the warehouse keepers. Farmers are also becoming more cautious about selling the new crop.
Rapeseed meal also became cheaper at first, probably also because buyers should be well supplied by the end of January. The hope for further price reductions is unlikely to be confirmed for the time being. Extensive restrictions to combat the pandemic also make the situation on the physical market more difficult. There are also logistical problems with the procurement of soybean meal.
Rapeseed oil prices fell sharply, although the supply on the cash market is still scarce. The prices for all vegetable oils fell on the world market because the high corona incidences and the new omicron variant of the virus could stifle the positive development of the world economy. Crude oil prices fell by more than 10%.
Source
Hansa Terminhandel GmbH