Crude rapeseed oil prices have risen sharply over the past
week following strong gains in other major vegetable
oil markets and strong demand from both the food and
biodiesel sectors. Support in the biodiesel market is
supported by gains in the crude (mineral) oil market as well
as the necessity to use more liquid oils in the winter months.
Rapeseed oil is also finding more buying interest as it has
gone from being one of the most expensive vegetable oils
to one of the cheapest due to significant gains in the
sunflower oil market as well as recent strength in soyoil,
despite supportive fundamentals with poor production,
very tight stocks which will require record imports for the
coming months. There is more encouraging news in terms
of more optimistic rapeseed production prospects later this
year, which are helped by higher prices and assuming no
weather-related problems this year.