Rapeseed prices move up following coronavirus uncertainty

Prices for rapeseed have tended to firm over the past three weeks, uncoupling from recently weaker soybean prices.
Rapeseed prices in Paris increased 8% since their two-year low of €335.50 per tonne seen the middle of March as the scale of the coronavirus pandemic started to become clear and markets fell. The rapeseed market had previously been affected by uncertainty in the wake of the pandemic.
According to Agrarmarkt Informations-Gesellschaft (mbH), concerns over a decline in demand from the biodiesel sector and, consequently, also rapeseed feedstock put downward pressure on prices. Initially, support came from firm soybean prices in Chicago.
Recently, rising prices of crude oil and palm oil also contributed to the increase. The weaker euro provided additional support, as it makes rapeseed oil more attractive for foreign purchasers.
Whereas rapeseed prices continued to rise beyond the end of the month, soybean prices dipped 3%.
Previously, brisk demand for soybean meal and logistical problems in South America caused by the corona pandemic had led to a sharp jump in prices. But then the ongoing harvests in Brazil and Argentina moved back into focus.
Brazil expects a bumper crop of 126 million tonnes and Argentina also anticipates a large harvest. Slow US export business with China was another factor driving prices down.

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