European rapeseed prices fall 5.2% in a week amid oil price slump

The European rapeseed market is facing pressure from a sharp decline in global crude oil prices, which is weighing on feedstock prices for biofuel production. On November 4, February rapeseed futures on Euronext in Paris fell by 2% to €528/t, or approximately $595/t. Prices have declined by 5.2% since the beginning of the week and by 5.7% over the past month, although they remain 12.6% higher year-on-year.

The main driver of the decline was a sharp drop in crude oil prices. January Brent futures fell by 9.6% in a single day to $94.5 per barrel, losing around 20% of their value since the beginning of the week. US WTI crude oil declined by 9.2% to $87 per barrel. The market was affected by easing geopolitical risks, expectations of reduced tensions surrounding Iran and data showing an increase in US oil inventories.

During the 2026/27 marketing year, rapeseed futures in Paris have fluctuated within a range of €516–563/t. Prices have been influenced by crude oil movements, concerns over potential disruptions to Ukrainian supplies and forecasts of lower canola harvests in Canada and Australia, which have not materialized so far. Meanwhile, January canola futures in Winnipeg have declined by 2.6% since the beginning of the week to CAD 768/t, or approximately $550/t. Prices have fallen by 8.6% over the past month.

Lower European futures prices are also putting pressure on Ukrainian rapeseed export prices. However, shipments remain active. During the first 29 days of October, Ukraine exported 357.2 thsd tons of rapeseed, compared with 430 thsd tons in September and 292.6 thsd tons in August. Total exports since the beginning of the 2026/27 marketing year have reached 1.1 mln tons, against a projected seasonal volume of 2–2.5 mln tons.

Ukrainian rapeseed exports could remain relatively high in November and December, supported by steady demand from the European Union. Canola shipments from Canada and Australia are currently less competitive due to high prices and increased domestic processing in both countries. Meanwhile, further movements in Ukrainian rapeseed prices will largely depend on developments in the crude oil market, demand from European processors and changes in futures quotations.

Tags: EU, rapeseed, global market