On Friday, quotes for canola and rape recovered the previous week's decline

Despite lower oil prices and forecasts of reduced demand for biofuels in 2025, quotes for canola and canola rose sharply on Friday, recovering from the previous week's decline. Importers in the EU switched from buying canola from Ukraine to canola from Canada and Australia.

 

February rapeseed futures on the Paris MATIF rose 1.6% to €539.25/t or $568/t (+8.5% on the month) on Friday amid limited supply from European farmers.

 

November canola futures on the Winnipeg exchange fell 6% since Monday, but rose immediately 3.2% on Friday to CAD 647/t or $460/t (+3.5% for the month) on strong the pace of exports and the restoration of port operations after the strike.

 

According to Statistics Canada, in the 2024/25 fiscal year (as of November 10), the country already exported 3.36 million tons of canola, which is twice the corresponding figure of the previous season (1.6 million tons).

 

The U.S. biofuels industry remains under pressure from low biofuel quotas for 2023, 2024 and 2025 set by President Biden's administration, as well as Trump's shock appointments to the position of secretary of energy of the head of an oil service company, and to the position of head of the Environmental Protection Agency (EPA) ex- congressman, who announced the main task of repealing Biden's rules on environmental protection in part climate

 

The EPA is setting renewable energy volume obligations (RVOs), so plans for ethanol, biodiesel and renewable diesel production in 2025-26-27 may be reduced and biofuel subsidies will be reduced, especially in light of Musk's appointment as head of the Administration to Cut Budget Expenditures .

 

In Ukraine, export purchase prices for rape during the week remained at the level of 530-535 $/t or 25,000-25,300 UAH/t with delivery to the Black Sea ports, but the number of offers is small, so for large batches with quick delivery, traders paid 545-550 $/ton

 

In Australia, canola has been harvested on 30% of the area, and local processors have sharply increased purchases to buy the 1 million tons they need for this season. It is expected that in FY 2024/25 the country will harvest 5-5.5 million tons of canola, of which it will export 4-4.5 million tons. In FY 2022/23, Australia exported 6.02 million tons of canola, and in FY 2023/24, it already exported 6.13 million tons, of which 1.3 million tons were purchased by Japan, 885.8 thousand tons, and Germany, 768.06 thousand tons t - UAE.