Oilseed Prices Surge on Energy Fears and Weather Concerns
The global oilseeds market has seen significant gains in recent weeks due to rising energy prices and concerns over weather conditions. The International Grains Council (IGC) reported a 7% increase in soybean values across all key origins, with Chicago futures rallying by 8%. The surge in energy values is attributed to heightened geopolitical worries in the Middle East.
The IGC noted that firm local and international demand for oilseeds, particularly from Chinese buyers securing more cargoes for shipment in 2026-27, has also contributed to the price increase. US export commitments for delivery to all destinations were 102% higher year on year by early September, with Gulf fob quotations rising by 7%, to $530.
Rapeseed prices have also been firmer, with ICE canola futures in Canada gaining a net 1% month on month. However, the IGC noted that Brazilian premiums have eased slightly since mid-August, partly reflecting the uplift in US futures and some seasonal switching of buying interest towards US new crop supplies.