Low prices for rapeseed oil contribute to the growth of global demand

Against the background of attractive prices and a significant volume of production, rapeseed oil consumption reached a record 29.8 million tons in 2023, which is 11% or 3 million tons higher than last year, reports Oil World (Germany).

At the same time, the share of rapeseed oil consumption has grown not only in the edible oil market (primarily in India and China), but also in the biodiesel market in North America and the EU. The premium for rapeseed oil compared to soybean oil in Rotterdam has fallen from $263/t in 2022 to $37/t in 2023, making Argentine biodiesel unattractive to European buyers, causing its deliveries to the EU in January-October 2023. decreased to 0.2 million tons compared to 1 million tons for the same period in 2022.

Falling rapeseed oil prices have contributed to an increase in its use in biodiesel production in the EU. Against this background, the consumption of this oil in 2023 may grow compared to last year in the EU by 0.4 million tons to a record 10 million tons, in the USA by 1 million tons or 40% to a record 3.7 million tons, in Canada - by 0.2 to 1.2 million tons.

At the same time, the rate of world production of rapeseed oil in 2023 will exceed the rate of its consumption by 0.7 million tons, as a result of which its reserves will grow to a 7-year maximum of 4.15 million tons (compared to 3.42 million tons at the end of December 2022).