Rape and canola prices fell on expectations of lower vegetable oil prices

A possible decrease in the demand for biofuels after the arrival of the new US Administration and the glut of raw materials in processing plants for several months sharply reduced the demand for rape and canola, which collapsed the quotation.

January canola futures on the Winnipeg exchange fell 5% this week to CAD 617/t or $442/t (-2.1% for the month) even as canola exports double last year's pace and oil demand from the US side remains high.

February rapeseed futures on the Paris MATIF fell 1.7% to €531.5/t or $560/t yesterday (-0.7% for the week, +4.6% for the month) on the back of falling prices for biodiesel and meal due to increased supply of soybean meal from South America.

In Ukraine, the purchase prices for rapeseed with delivery to Black Sea ports last week rose to $540-550/t or UAH 26,000-26,300/t, and since Monday fell by $10/t to $535-540/t or 25,000-25,800 hryvnias/ton

Increased canola shipments from Australia to the EU are adding pressure to prices in Europe, which could boost sales by local farmers in December and January. However, for now, demand from processors is fixed only for deliveries in February, as they have sufficient stocks of raw materials.