Oilseed rape price again approaches €450 per ton

Photo: Canva
Photo: Canva

The price of rapeseed recovery that started at the beginning of this month continues. Not much has changed in the market, but it appears that the view has gradually emerged that prices have fallen too sharply in recent months.

Speculation on ever-falling prices has caused prices for many grains and oilseeds to fall sharply. The market for oilseeds has gone so far that the product has become too cheap in the eyes of some parties. This is reinforced by the fact that supply dries up in the run-up to the new growing season.

On the futures market in Paris, the price fell to just above €400 per ton at the end of February. Another €40 has now been added and the May contract is quoted at €446.50 per ton (Tuesday afternoon, March 19). November delivery has already reached the €450 level and the February contract is slightly above it.

Canada’s rapeseed area shrinks 3.1%

In addition to the drying up of speculation on falling prices, rapeseed production will also be slightly smaller here and there. These are not the smallest production regions where this occurs. For example, the statistics agency StatCan announces that the rapeseed area in Canada will shrink by 3.1% this year to 8.66 million hectares. This means that cultivation has returned to the level of 2022. This means that the area is slightly smaller than the 10-year average.

Lower rapeseed production expected

Smaller production is also expected in Ukraine for the time being. Following the grain federation UGA, consultancy firm APK-Inform has also provisionally arrived at a harvest estimate of 4.2 million tons. According to APK-Inform, this quantity is 9% smaller than the 2023 harvest.

John Ramaker Commodities market editor, Boerderij