Last week saw Paris rapeseed prices (May 22) reach new highs. The contract closed €904.75/t, up €84/t from the week before. The November 22 contract also closed higher on the week (+€42/t) at €733.50/t.
Last week, Chicago soya beans (May 22) ended up $5.69/t at $615.76/t. The new crop (Nov-22) extended gains further (+$14.97/t) to close the week at $547.79/t.
Black Sea tensions continue to be a key driver of oilseed commodity markets.
Last week also saw the release of the March world agricultural supply and demand estimates (WASDE). Despite some recent rain in South America, dryness is continuing to hamper crop prospects, according to the report.
The USDA reduced their Argentine soya bean production estimate by 1.5 million tonnes (Mt), to 43.5Mt.
Similarly for Brazil, the USDA estimate (127Mt) now sits 4.2Mt above local reporter, CONAB, who trimmed a further 2.7Mt from its estimate last Thursday.
Reduced crop prospects are also coupled with an announcement from Argentina that registration of soy oil and meal exports are halted. This announcement was made over the weekend and could squeeze supplies in an already tight market. Argentina is the world’s top exporter of soy products.
This follows news from Indonesia, the world’s top palm oil exporter, that 30% of their planned palm oil exports must be sold domestically. This is up from 20% previously.