On Friday, prices for rapeseed and canola recovered from the previous week’s decline

Despite the decline in oil prices and forecasts of a decline in demand for biofuels in 2025, prices for rapeseed and canola rose sharply on Friday, recovering from the previous week’s decline. Importers in the EU switched from purchases of rapeseed from Ukraine to canola from Canada and Australia.

the February futures for rapeseed on the Paris MATIF on Friday rose 1.6% to 539,25 €/t or 568 $/t (+8.5% for the month) amid limited supply from European farmers.

November futures for canola on the Winnipeg stock exchange on Monday fell by 6%, but on Friday rose immediately by 3.2% to 647 CAD/t or 460 $/t (+3.5% for the month) due to high exports and the resumption of work of ports after the strike.

According to the Statistics Canada, in 2024/25 MY (as of November 10), the country exported 3.36 mln tonnes of canola, which is twice higher than the previous season (1.6 mln tonnes).

The US biofuel industry remains under pressure from low biofuel quotas for 2023, 2024 and 2025 set by the Biden administration, as well as Trump’s shock appointments of the head of an oilfield services company as Secretary of Energy and a former congressman as head of the Environmental Protection Agency (EPA), who has declared his main goal to repeal Biden’s climate protection rules.

Agency ERA sets obligations on the volume of renewable energy sources (RVO), so the plans for the production of ethanol, biodiesel and renewable diesel in 2025-26-27 may decrease, and subsidies for biofuels will be reduced, especially against the background of the appointment of the Mask head of the Administration to reduce budget expenditures.

In Ukraine, export purchase prices for rapeseed during the week remained at the level of 530-535 $/t or 25000-25300 UAH/t with delivery to the ports of the black sea, but the number of offers is small, so for large batches with fast delivery traders paid 545-550 $/t.

In Australia, canola is harvested on 30% of the area, and local processors have sharply stepped up purchases to buy the 1 million tons they need for this season. In MY 2024/25 , the country is expected to harvest 5-5.5 mln tonnes of canola, and export 4-4.5 mln tonnes of it. In 2022/23 MY, Australia exported 6.02 mln tonnes of canola, and in MY 2023/24 – 6.13 mln tonnes, of which 1.3 mln tonnes were purchased by Japan, 885.8 thsd tonnes – by Germany, 768.06 thsd tonnes – by the UAE.

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Tags: prices, rapeseed