Prices for both rapeseed and soybeans have been on an uptick for several months with the former at record levels.
Paris rapeseed futures have rallied significantly since the beginning of the year and on 22 April they reached a record high at €595 per tonne.
They have maintained this level since then and the reason for latest sharp price surge was the cold snap that gripped France. According to Terres Inovia, the south-west, the north-east and Normandy were affected most severely.
In these areas, around 10% of the land planted to rapeseed (approximately 90,000 hectares) was broken up due to winterkill losses.
Considering the progress of plant growth, yields are also set to fall short of expectations in some locations due to frost.
Tight EU rapeseed supply in 2020/21 has driven prices since the beginning of the year.
Imports from the Baltic countries and Ukraine have slowed due to declining stocks and shipments from Canada also dwindled as a result of a steady decrease in supply.
In the first half of the trading year, Canada exported rapeseed at a record pace. This led to a sharp reduction in the country's scarce stocks.
Soybean prices in Chicago have also been moving in only one direction for several months - upwards.
The focus in the soybean market has been on growing and harvesting conditions in South America and the US, brisk demand and the surprisingly sharply drop in stocks.
In Brazil, drought initially delayed plantings, whereas later heavy rains hampered harvest operations.
In Argentina, the harvest could be slightly lower because the drought that hit the country has curtailed yields. Also, the market had to rely on US soybeans for longer than usual due to the harvest delay in Brazil.
US stocks were reduced faster than initially forecast due to unexpectedly buoyant demand from China. Consequently, unfavourable supply forecasts for the coming crop year are fuelling concerns about supply bottlenecks and prices.
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