PARIS: European rapeseed futures rose 2.5% on Thursday as signs of tightening stocks in the European Union helped the contract rally for an eighth straight session, while wheat traded flat.
On the Euronext rapeseed market, front-month May was 12.75 euros per tonne higher at 516.50 euros, after touching its highest since September 2012 at 519.75 euros a tonne earlier in the session.
That was not far from 526.25 euros, the highest price ever traded on Euronext rapeseed’s front-month since the futures contract was launched in 1994.
In the EU, stocks of rapeseed or canola, used for edible oil and biodiesel production, fell to an estimated 8.7 million tonnes in early January from 9.1 million in the same period last year and 10.7 million in January 2019, Oil World CEO Thomas Mielke told Reuters on Wednesday.
The surge in EU rapeseed prices will likely boost EU imports of the oilseed in the first six months of 2021, he added.
On the milling wheat market, most traded May was unchanged at 229.75 euros a tonne due to a lack of fresh demand.
“Russian exporters seem to have pretty much smothered nearby import demand with a surge in exports in the weeks before the Russian export tax increase on March 1,” a German trader said.
“The tender market for wheat is pretty quiet. There is disappointment that this week has seen no new tenders issued for wheat by the big three buyers Saudi Arabia, Egypt and Algeria, all three were seeking other things apart from wheat.”
Saudi Arabia has tendered for feed barley, Algeria bought durum and Egypt bought soyoil.
Standard bread wheat with 12% protein for March delivery in Hamburg was offered for sale unchanged at around 8 euros over Paris May.—Reuters
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