Rapeseed prices recover after dip last week

12-07-2023 | |
Photo: Mark Pasveer
Photo: Mark Pasveer

It’s a bit up and down as far as rapeseed prices are concerned at the moment. Last week got off to a good start, but prices dropped somewhat during the week.

Lower than expected soybean sowing in the United States initially led to higher prices last week. Then rain came in a large part of the growing areas in the US and that destroyed the price gains at the beginning of that week. The fall in prices also resulted in lower prices for rapeseed.

Strong demand from biofuel sector

The beginning of this week is very similar to last week. The Union for the Promotion of Oil and Protein Plants (UFOP) expects a smaller supply in the new season than last year. Australia in particular will produce less, but the supply in Russia and Ukraine will also be smaller than last season. This is offset by strong demand from the biofuel sector. The UFOP therefore mainly sees that the season has the green light to sow more rapeseed in August and September.

Grain deal to impact rising prices

The positive signal was picked up by the market and that caused prices to rise again at the beginning of this week. On Tuesday afternoon, July 11, the quotation rose to around €455 per tonne, putting the price development back on track to reach the level of the beginning of last week. Whether prices can continue to rise depends, among other things, on the grain deal between Ukraine and Russia. If there is no extension for delivery after July 18, prices will rise significantly, according to analysts.

John Ramaker Commodities market editor, Boerderij