Rapeseed and canola prices recovered after falling, supported by rising oil prices

On the Paris stock exchange, speculative growth in rapeseed prices continues, due to market uncertainty due to reduced supplies from Ukraine and delayed supplies from Canada and Australia. The speculative growth in oil prices caused by cold weather in the US is supporting biofuel and rapeseed prices in the EU.

In the first 9 days of January, rapeseed prices on the Paris stock exchange were highly volatile. On the first day, they rose by 2.5%, then fell for 3 days, and in the last 4 sessions, they rose again by 4%.

February rapeseed futures rose 0.8% yesterday to €533.25/t or $548.6/t (+1.7% for the week, 0% for the month).

March Brent crude futures have risen 4% since the beginning of January to $77/barrel, which contributed to higher rapeseed prices.

March canola futures on the Winnipeg Exchange fell 0.5% to CAD 625/t or $ 434/t yesterday (0% for the week, -0.8% for the month) due to uncertainty over further imports of canola oil into the US amid Trump's promised tariff increase. Trump's statements that Canada should become the 51st state of the US negatively affect the Canadian dollar, which rose to CAD 1.44/$.

The spread between Canadian canola and European rapeseed prices has increased again to $115/t, improving the prospects for canola exports to the EU.

The market is awaiting today's USDA report, which may increase the forecast for the Australian canola crop and reduce soybean consumption estimates, which will lead to an increase in inventories and increase speculative pressure on canola prices.