Rising prices for oil and palm oil support prices for canola and rapeseed
During the week, oil prices rose by 9.1% on expectations of escalation between Iran and Israel, which supported the quotations of vegetable oils, especially palm (futures on which on the Bursa stock exchange in Malaysia rose by 6.1%), as well as prices for rapeseed and canola.
November futures for rapeseed on the Paris MATIF on Friday rose another 1.2% to 486,75 €/t or 534 $/t (+3.7% for the week and month), and February – to 493 €/t (+3% for the week, +4.4% for the month). Quotes were supported by the depreciation of the euro against the dollar from 1.12 to 1.097.
Amid rising oil and palm oil prices, November canola futures on the Winnipeg Stock Exchange rose 3.5% to 625 CAD/t or $460/t (+6.8% for the month) over the week, despite a sharp decline in exports.
Dry and warm weather in the prairies of Canada in the next 7-10 days will allow to complete the harvesting of canola with minimal losses. As of September 30, 82% of the canola area in Saskatchewan has been harvested, 71% in Alberta, and 78% in Manitoba.
In the period of September 22-30, the export of canola from Canada decreased compared to the previous week from 228.6 to 87 thousand tons, and in general in the season (since August 1) reached 1.757 million tons, which is three times higher than last year.
In Ukraine, export purchase prices for rapeseed for the week increased by 200-300 UAH/t to 23400-23600 UAH/t or 495-505 USD/t with delivery to the Black Sea ports amid reduced supply from producers, while demand remains quite active.
According to the association “Ukroliyaprom”, in MY 2024/25 (as of October 1), Ukraine exported 1.8 mln tonnes of rapeseed, up 13.4% compared to last year. By the end of the season, Ukraine may export 1 mln tonnes of rapeseed, as the domestic processing in the current season will decrease to 250-300 thsd tonnes.
In MY 2023/24, Ukraine exported 424 thsd tonnes of rapeseed oil, up 404% compared to 2022/23 MY, and equivalent to the processing of 1 mln tonnes of rapeseed. In September 2024, the exports of rapeseed oil totaled only 39.2 thsd tonnes, down 63% compared to September 2023.
Got additional questions?
We will be happy to assist!
Write to us
Our manager will contact you soon