Prices for rapeseed fell on expectations of lower prices for vegetable oils

Possible decline in demand for biofuels after the arrival of the new US administration and the overstocking of processing plants with raw materials for several months sharply reduced the demand for rapeseed and canola, which brought down the quotes.

January futures for canola on the Winnipeg stock exchange this week fell by 5% to 617 CAD/t or 442 $/t (-2.1% for the month), despite the fact that the rate of export of canola is twice as high as last year, and the demand for oil from the United States remains high.

February futures for rapeseed on the Paris MATIF yesterday fell 1.7% to 531,5 €/t or 560 $/t (-0.7% for the week, +4.6% for the month) amid falling prices for biodiesel and meal due to increased supply of soybean meal from South America.

In Ukraine, the purchase price of rapeseed for delivery to the ports of the black sea last week rose to 540-550 $/t or 26000-26300 UAH/t, and on Monday fell by $ 10/t to 535-540 $/t or 25000-25800 UAH/t.

Increase in the supply of canola from Australia to the EU increases the pressure on prices in Europe, which may increase sales by local farmers in December and January. However, currently, the demand from processors is fixed only for deliveries in February, as they have sufficient stocks of raw materials.

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