Quotations for rapeseed and canola fell by 8% and 4.8% since the beginning of the week

The sharp fall in oil prices has brought down prices for palm oil, followed by falling prices for rapeseed and canola, which are the main raw materials for biofuel production.

Despite declining estimates of rapeseed yields in the EU in two sessions, August rapeseed futures on the Paris MATIF fell by 8% or 47 € / t to 719.75 € / t or 756.5 $ / t, losing 15% in a month against the background reduction of oil prices by 6-8%.

November canola futures on Monday fell 4.8% to 954 CAD / t or $ 735 / t, down 11.6% from last month. The canola market is supported by unfavorable weather in Saskatchewan, which is the main canola producer in Canada.

As of June 12, the EU countries imported 5.19 million tons of rapeseed in 2021/22 MY, which is 15% less than in the previous season, when 6.1 million tons were purchased.

It is worth noting that in the second half of the season, Australia sharply increased the supply of canola to the EU - immediately to 2.62 million tons, which was 50.5% of total rapeseed imports from the European Union. In the period from 6 to 12 June alone, canola imports from Australia to the EU amounted to 110.8 thousand tons.

At the same time, the second largest supplier of rapeseed to the EU is Ukraine, which in 2021/22 MY exported to the EU 1.65 million tons of rapeseed, which is 31.8% of European oil imports. The main deliveries of rapeseed were made in the first half of the season, and significantly decreased after the war.

Canada is the third main supplier of oilseeds to the EU, and in 2021/22 MY exported 661.2 thousand tons of canola to the European Union, which is 11.8% of European imports.