January 7, 2022

Weekly Market Highlights – Rapeseed surges to new highs



The first trading week of 2022 has done little to dispel concerns that volatility will remain an ongoing feature of grain markets, as was seen last year.

The grain and oilseeds reports produced this week, highlighted the views of our analysts and provided some focus on the issues underlying the volatility and the outlook as we move into key yield determining period for South American crops.

Our analysis delved into underlying stock levels of wheat and corn, focusing on the high premium of the former and the sustainability of this relationship.

In light of South American weather, we look at the risk of China and how farmers in the US and South America will react to current pricing levels and input costs.

Rapeseed was by far the biggest mover of this week, our weekly oilseeds analysis looked at the underlying drivers of this price surge, focusing on vegetable oils and global stock levels and providing our insights on what the rest of the season holds in store.

The front month rapeseed contract rallied €69.5/T taking the price to well over €800/T, trading at €831.75.

With the USDA report next week, markets are braced for further volatility to come.

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January 7, 2022