Rapeseed prices update records despite falling oil and vegetable oil prices

Last week, rapeseed prices on Euronext in Paris were actively growing against the background of speculative demand and supply shortages, and reached record values even despite a sharp decline in oil and vegetable oil prices.

February rapeseed futures for the last two sessions rose by 3.7% to a record 729 €/ton or 8 820/ton, adding 5.4% of the price for the month. At the same time, may futures rose by 2.6% to 669.25 €/ton, and August – by 3.5% to 545 €/ton. prices are supported by the delay in harvesting in Australia and the resulting shortage of supply.

From July 1 to December 12, the European Union imported only 2.08 million tons of rapeseed, which is 55% lower than last year's pace, primarily due to a reduction in supplies from Canada from 1.35 million tons to 92.6 thousand tons. Ukraine exported 1.51 million tons of rapeseed to the EU, which is significantly less than last year, as it increased its own processing and increased supplies to Pakistan, Bangladesh and the United Arab Emirates.

Australia exported 300 thousand tons of rapeseed to the EU out of the projected 1.5-2 million tons, and has been boosting supplies since January. Australia's canola export forecast for my 2021/22 has been raised to 4.6 million tons from 3.3 million tons in the previous season.

It is worth noting that the EU countries have almost doubled the import of rapeseed oil compared to last season, from 143.5 to 272 thousand tons, and are increasing purchases of soy products.

Palm oil futures fell by 8.9% last week, and Brent crude oil – by 5.3%, which increased pressure on the prices of all oilseeds and confirmed the speculative component of the increase in rapeseed prices in Paris.

January canola futures on the Winnipeg Stock Exchange declined early last week, but later, following rapeseed prices, they recovered to the previous level of 1006 CAD/ton or 7 779/ton, losing 1.9% of the price for the month.

Australian canola last week fell in price from 8 830/ton to 7 775-785/ton, losing 9% of the price for the month, although it reached a record 9 900 / ton during this period.