Discover the latest seeds trends and developments with Agritel and Lidea
October 18, 2021
Rapeseed has been trading at unprecedented prices. The production incident in Canada and ever-increasing demand for biofuels and oils is driving the entire complex up to record prices. Demand could be rationed but the market is still being driven by a euro trading under the $1.16 mark and by crude oil above $80.
Beware though of the release of options on Euronext which close on 15 October and which could put prices under pressure. Furthermore, the late arrival of soya and sunflower could bring pressure to bear on prices. Current prices and volatility call for caution.
Demand is there and driving grains up. After a summer marked by production setbacks, the balance sheets are tightening and even though prices are high, they are still unlikely to ration international demand. Furthermore, Russia’s tariff and regulatory policy is giving an extra boost to French and Ukrainian exports which is reflected in the prices of these sources. Maize’s performance is impressive, with the Ukrainian and French harvests still behind schedule.