Rapeseed prices

Rapeseed oil prices are mixed over the past week with prices

holding firm in the nearby months through to March-April,

with forward months (notably new crop) slightly lower.

However, some of this can also be explained by a weakening

Sterling due to ongoing concerns over whether there will be

some post transition period agreement with the European

Union. There are still reports of some additional buying interest

from China in the EU market, which would be supportive given

the already tight supply and demand situation. As discussed

in my last report, there is a large inverse in the market with

nearby months extremely firm with the forward months lower

(new crop, August onward, is trading at a large discount).

Nearby months are supported by strong demand, with

refineries well committed-sold through to the end of January,

as although prices have firmed over the past month, rapeseed

remains extremely well priced compared to sunflower oil and

even against soybean oil. Despite supportive fundamentals,

with lower EU and UK production, the rise in rapeseed oil prices

have been more “modest” compared to competing oils which

has encouraged some buyers who are able to switch,

to move to rapeseed oil.