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.