Rapeseed dives below €500/t, as Trump tariff talk weighs
Signup to this report here For all the latest forecasts and analysis, visit CRM Agri’s analysis hub Rapeseed prices extended their retreat, falling below €500/t for the first time in six weeks, weighed by US tariff worries, while wheat prices eased too, despite reports of importer interest. Rapeseed futures for February-25 headed for the close in Paris down by 2.7%, at their weakest since mid-October, as concerns over Donald Trump’s plans for 25% tariffs on US imports from Canada continued to overshadow the market. Canada has, of late relied on the US for more than 90% of its canola oil exports, and some 70% of canola meal exports too, provoking ideas that should these products be priced out of the US market, they will be diverted to other destinations, weighing on values there. A potential slowdown in Canada’s crush would free up more canola for export too. In Winnipeg, January-25 futures in canola itself shed 2.1% to take to 8% their decline over the past week. Paris rapeseed futures for February-25 are down 7% over the same period. Wheat futures also eased on both sides of the Atlantic, amid talk of growing competition from southern hemisphere supplies, as harvests there expand. Argentine exports are reportedly being priced as low as $213/t FOB, well below even Russian offers at $226/t FOB. The reports smothered support to prices from a series of import tenders, with Tunisia buying 100Kt of soft wheat and 100Kt of durum, Jordan tendering for 120Kt of wheat and Algeria buying 150-150Kt. March-25 wheat futures traded 1.8% lower in lunchtime deals in Chicago, falling below $5.50/Bu, feeling pressure too from Mr Trump’s tariff plans, which also include Mexico, threatening trade tensions with a big buyer of US wheat. Paris December-24 wheat shed a more modest 0.9%, despite gains in European currencies against the dollar, while London feed wheat for May-25 settled 0.6% lower. Corn futures made better use of the retreat in the dollar – which on profit-taking dipped by 0.9% against a basket of currencies – to post 0.2% headway in Chicago for March-25. Soybean futures for January-25 gained 0.5%, supported by firmness in the soymeal market. January-25 soymeal futures added 1.7%, to return close to $400/T, after unearthing buyers at four-year lows touched earlier in the month. Subscribers and clients can access more analysis, insights and advice via email and here Interested in learning more about our analysis and subscriptions? Contact us Not yet subscribed? Get in touch |
