Rapeseed was able to make gains yesterday (Thursday) and benefit from a bullish trend in soybeans. By early afternoon today (Friday), however, there were already significant losses again. The front month of August closed yesterday at 474.50 euros/t, at 3.30 pm 464.75 euros/t were traded, 9.75 euros less than yesterday. The generally good growing conditions for rapeseed are putting pressure on prices on the one hand. Although it is not yet clear what damage the flooding in Baden-Württemberg and Bavaria will have on the harvest result, overall soil moisture has improved in Germany. The fact that the soy complex was also under pressure this week also affected rapeseed. Falling crude oil prices are also weighing on price expectations. The situation on the cash markets remains calm, with rapeseed meal supplies still reported to be rather tight.
With the exception of Thursday, soybean prices moved noticeably southwards this week. Soybeans are also showing losses in pre-market trading today, Friday. On the one hand, weak export demand is having a negative impact, but falling crude oil prices are also weighing on soybeans and soybean oil. South American exporters are currently able to supply large quantities on the world market and are offering more favorable terms compared to the USA. In the medium term, US traders hope that the announced tax reform in Brazil will improve prospects. This could significantly jeopardize the competitiveness of Brazilians. Soybean processing in April reached a seven-month low.
ZMP Live Expert Opinion
The oilseed markets are under pressure. Yield prospects appear good, US soybean sowing is progressing very quickly and recent rainfall is providing support for sowing. At the same time, export competition is fierce.
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