With the weak indications from the soybean market and the deep red figures on the Winnipeg stock exchange, rapeseed prices went into the red yesterday. The front month led with a loss of EUR 14.25/ton. The February date was closed at 585.50 euros/ton. Canola contracts also went significantly south. The price correction on the soybean market dragged the oilseed down with it, and the renewed strength of the Canadian currency made for an unfavorable exchange rate. Soybeans went down yesterday, posting double-digit losses. The front month posted a loss of $3975 US cents/bushel to end the day at $1429.75 US cents/bushel. Above all, a sharp correction in soybean oil caused the sell-off on the stock exchange. Market observers justified the correction by the US government's plan to change and reduce the blends of biofuels over the next three years. Biofuel is obtained from soybean oil, among other things, so the new law could have a significant impact on the processing of soybean oil. Around 20.82 billiongallons of biofuel will be blended, well below market participants' expectations and only an increase of 190 million gallons from last year. That in turn means that only 5.2 billion gallons of advanced biofuels are blended in.
ZMP Live Expert Opinion
Oilseeds have come under significant pressure. This week, too, the downward trend prevailed and yesterday's price correction in particular caused severe losses. The market remains tight. Despite uncertain harvest prospects in South America, bearish momentum remains strong and could continue to provide pressure in the coming week.
You see historical data because you're not logged in or not a ZMP Live+ member. Get your information advantage now!
