Drought in Russia: Grain region particularly affected
In Russia, the main region for grain cultivation has been experiencing dry conditions for weeks. This is likely to result in lower yields and poorer quality than previously expected.
The discussion surrounding tariffs between the USA and the EU is causing uncertainty in the international oilseed markets, while drought concerns have slightly eased after recent rainfall. A current market assessment by Jan Peters, Peters Agrardaten GmbH: Rapeseed prices are currently moving sideways, but at the beginning of the week, they were slightly higher at €488.50/t in August compared to the previous week. Due to the holiday in the USA yesterday, there were no new market impulses. The announced tariffs by the USA against the EU are being closely monitored in this market. Trade dispute continues to unsettle Particularly for soybeans, a decrease in demand from Europe could follow due to retaliatory measures if the announced 50% tariffs are implemented. This could mean price discounts for soybeans, as well as rapeseed in the EU. This morning in Chicago, soybeans are experiencing slight gains due to the postponement of the deadline to early July. MARS anticipates slightly lower rapeseed yields in the EU at 3.17 t/ha. For Germany, yields of 3.6 t/ha are expected instead of 3.67 t/ha in April. Despite the recent rainfall, soil moisture levels remain widely too low. Quiet cash market There is still little activity in the cash market. Oil mills show minimal demand. For the upcoming harvest, they are facing low prices in the market. For current producer prices, click here.