ODA Market Highlights - 04/12/2018

Rapeseed climbs with the new prospect of taxes on Argentinean biodiesel in Europe.

By | Published at

On the oilseeds complex, soya prices were advancing as European trading ended. They were fueled by the possibility of China buying U.S. agricultural products again following the meeting betwen Beijing and Washington.

Prices for palm and soybean oils rose on their respective markets with support from crude oil's rebound. Indeed, crude prices have been increasing, buoyed by hopes for an agreement to decrease oil production at this Friday's meeting between OPEC and its allies.

Rapeseed prices made considerable gains today after yesterday evening's announcement of a new European tax on Argentinean biodiesel imports. The European Commission proposed taxing imports of Argentinean biodiesel into Europe at 25% to 33%. The new tax could be implemented as soon as member countries approve the law's wording.

In grains, Chicago wheat prices were sinking slightly as the European session closed against a backdrop of some profit-taking. The Ukrainian Ministry of Agriculture asserted that grain exports from ports on the Azov Sea had been able to begin again. At the same time, the Russian weather service judged current Russian wheat conditions as a bit worse than than last year and than the five-year average. However, the remark was not able to reverse the price trend. In the wake of U.S. wheat, the Mar.-19 wheat expiry finished slightly lower and became the most liquid expiry as the close of the Dec.-18 contract (on 10 December) approaches.

In terms of international trade, Jordan bought 60KT of wheat, and Indonesia demanded new health measures on wheat imports from Ukraine.

Maize prices in Chicago gained slightly under soya's influence. Euronext maize ended the session just slightly higher given the change in the euro-dollar exchange rate.