Rapeseed remains economically attractive for cultivation in Germany

The price gap between forward contracts for soft wheat and rapeseed from the 2025 crop has recently widened to a ratio of 1 to 2.4, making rapeseed cultivation for the 2026 harvest increasingly appealing. In early May 2025, German rapeseed growers received an average of €443 per tonne ex-farm for forward contracts, more than double the €186 per tonne paid for soft wheat. This compares to €441 per tonne for rapeseed in May 2024.

Rapeseed prices were bolstered by several factors. The futures market temporarily drove price increases, while declining Canadian stocks due to rising exports tightened supply, influencing prices in Paris. Additionally, a weakening euro enhanced the competitiveness of European rapeseed on the global market. In Ukraine, dry conditions and frosts in April raised concerns about reduced yield potential for 2025, further constraining supply.

In Germany, additional rainfall is needed to maximize rapeseed yield potential. If the lack of rain persists, prices could rise significantly in the coming weeks, providing further incentive for farmers to sow winter rapeseed in 2025. Meanwhile, soft wheat prices for the 2025 crop dropped to €186 per tonne, €22 lower than in May 2024, making it less attractive for producers.

Due to low wheat prices, farmers have focused on clearing warehouses and fulfilling domestic forward contracts, with minimal attention to new deals. Conversely, high rapeseed prices and the potential for further increases solidify its position as an economically viable alternative, particularly amid unstable weather conditions and shrinking global stocks.

Tags: rapeseed, Germany, prices