Rising oil and palm oil prices support canola and rapeseed quotes

During the week, oil prices rose by 9.1% on expectations of an escalation between Iran and Israel, which supported quotations of vegetable oils, especially palm (the futures of which rose by 6.1% on the Bursa exchange in Malaysia), as well as the prices of rapeseed and canola.

 

November rape futures on the Paris MATIF on Friday rose another 1.2% to €486.75/t or $534/t (+3.7% for the week and month), and February - to €493 /t (+3% for the week, +4.4% for the month). The quotation supported the decline in the euro against the dollar from 1.12 to 1.097.

 

On the back of rising oil and palm oil prices, November canola futures on the Winnipeg exchange rose 3.5% for the week to CAD 625/t or $460/t (+6.8% on the month), despite a sharp reduction of exports.

 

Dry and warm weather in the Canadian prairies over the next 7-10 days will allow the canola harvest to be completed with minimal damage. As of September 30, canola in Saskatchewan is harvested on 82% of the area, Alberta - on 71%, Manitoba - on 78% of the area.

 

In the period September 22-30, canola exports from Canada decreased compared to the previous week from 228.6 to 87 thousand tons, and in general in the season (from August 1) reached 1.757 million tons, which is three times ahead of last year's pace.

 

In Ukraine, export purchase prices for rapeseed for the week increased by UAH 200-300/t to UAH 23,400-23,600/t or $495-505/t with delivery to Black Sea ports against the background of reduced offers from producers, while demand remains quite active .

 

According to the data of the association "Ukroliyaprom", in 2024/25 MR (as of October 1), Ukraine exported 1.8 million tons of rapeseed, which is 13.4% higher than last year's pace. By the end of the season, another 1 million tons of rapeseed can be exported, as domestic processing will decrease to 250,000-300,000 tons in the current season.

 

In 2023/24 FY, Ukraine exported 424,000 tons of rapeseed oil, which is 404% higher than the 2022/23 FY and is equivalent to the processing of 1 million tons of rapeseed. In September 2024, the export of rapeseed oil amounted to only 39.2 thousand tons, which is 63% less than in September 2023.