EU rapeseed prices fall as canola supplies from Canada and Australia increase

As of November 17, compared to the previous season, EU countries increased their import of rapeseed by 38% from 1.833 to 2.612 million tons, of which 66.4% or 1.736 million tons were delivered from Ukraine, 25.3% or 660 thousand tons – from Australia and only 4.1% or 107 thousand tons from Canada, since Canadian canola is more expensive than Ukrainian and Australian rapeseed. Against this background, quotations for rape on the stock exchange in Paris during November fell by 14.4%.

According to the Fediol Vegetable Oil and Meal Industry Association, EU countries processed 1.6 million tons of rapeseed in October, which is the highest October figure since 2016 and is 4% higher than October 2021 processing.

Ukraine is completing the export of rapeseed and has already shipped 2.5 million tons of the forecasted 2.6-2.8 million tons. European consumers are more actively buying local rapeseed, although producers are restraining sales in anticipation of price growth to the level of spring 2022, but forecasts are putting pressure on the market record canola harvest in Australia.

February rapeseed futures on the Paris exchange fell 4% to €586.5/t or $611.6/t since Monday, having lost 14.4% since the beginning of the month, while May 2022 prices reached 846 €/ton

January canola futures on the Winnipeg exchange fell 4.5% to 820.5 CAD/t, or $615/t, since Monday, having lost 7.8% since the start of the month, after reaching 1,130 CAD/t in April.

Falling oil prices and new lockdowns in China are reducing demand for canola and canola, which are mainly used in biodiesel production.

In Ukraine, demand prices for rapeseed with delivery to the ports of the Danube and the Black Sea remain at the level of $470-500/t or UAH 17,200-17,500/t, while for supplies to DAP – Poland and the Czech Republic fell by €20-70/t to 550-570 €/t. Importers have already formed stocks needed until January and are reducing purchases, especially since the volume of offers of European rapeseed is growing.

Against the background of high prices and demand, farmers in Ukraine and the EU have increased canola acreage, which could add pressure to quotations in the spring, especially if the soybean harvest in South America lives up to forecasts.

Tags: Australia, Ukraine, EU, prices, Canada, rapeseed