Rapeseed oil prices in China rise nearly 9% on tight supplies

Rapeseed oil prices in China rose sharply in August amid tightening available supplies. The nearby futures contract reached CNY 10,788/t on August 20, gaining nearly 9% since the beginning of the month. Spot prices are currently at CNY 10,640–10,980/t, with rapeseed oil among the strongest performers in the vegetable oil market.

Low commercial inventories remain the main factor supporting prices. Chinese crushing plants continue to operate at relatively low rates due to limited rapeseed availability, while most of their output is being used to fulfil existing contracts. As a result, volumes available for spot trading continue to decline.

Additional pressure on supplies comes from the rotation of state rapeseed oil reserves across several regions of China. The need to replenish these stocks is increasing demand from crushers and further reducing the availability of oil on the spot market.

Concerns over future supplies have also increased due to the situation with imports from Russia, China’s largest direct supplier of rapeseed oil. In early August, restrictions on phytosanitary certificate issuance and tighter inspections at some Russian plants raised concerns about a potential decline in imports.

Analysts do not expect the supply situation to improve quickly, as crusher inventories remain tight and operating rates show no signs of a significant recovery. At the same time, higher prices are already weighing on demand, with buyers reducing activity and largely purchasing only to cover immediate needs.

Tags: prices, rapeseed oil, China