Sharp rise in biodiesel imports hits EU rapeseed market – FEDIOL

Source:  OleoScope

Prices for rapeseed oil in the EU have fallen by more than 30% over the past five months, which has also affected the European commodity market, as prices for rapeseed have also declined. This was reported by the Association of Oil Producers (FEDIOL). According to experts, the “abnormal growth” of biodiesel imports is putting serious pressure on prices.

Rapeseed is the main oilseed crop for the European Union: as a result of its processing, fat and oil companies receive rapeseed oil, which is considered a key raw material for biofuel production in the bloc.

“The EU also endorses the production of biodiesel from waste oils and fats as part of its renewable energy targets,” the report says.

FEDIOL noted that the current price changes are a signal of “abnormal market behavior.” The industry association did not promptly provide data on biodiesel imports to the EU.

At the same time, traders refer to other factors that pushed down prices: in particular, they believe it is a sharp increase in EU rapeseed imports and a change in biofuel policy (rejection of palm oil in production).

It is worth noting that the EU’s imports of vegetable oils have fallen sharply this season. This is due not only to the active supply of Ukrainian oilseeds to the market, but also to Europe’s reluctance to use palm oil in biodiesel production.

Tags: , , , ,

Got additional questions?
We will be happy to assist!