Low Rhine water levels support European rapeseed prices
Low water levels on the Rhine River continue to support rapeseed prices in Europe despite generally favorable crop prospects. Navigation restrictions have forced barges to operate at significantly reduced loads, increasing transportation costs for rapeseed, vegetable oils, and meal, while supporting procurement prices at crushing plants.
November rapeseed futures on MATIF remain above €520/t, while German cash prices for early August delivery have risen to €511-531/t, only about €20/t below the mid-July peak. The rally is being driven primarily by logistical bottlenecks rather than concerns about crop production.
At the same time, the upside for prices remains limited. Global rapeseed and canola production in 2026/27 is forecast to reach a record 97 mln tons, supported by larger crops in the EU, Ukraine, and Russia. In addition, softer Ukrainian export offers in recent weeks have helped cap further gains in the European market.
Analysts expect EU rapeseed demand to remain firm, supported by steady consumption from the biodiesel and food oil industries. However, in the short term, the European rapeseed market will continue to be driven primarily by Rhine water levels and inland logistics costs.
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