Rapeseed prices still on the up

Crude rapeseed oil prices have continued to rise over the

over the past week with support still coming from strong

demand from both the food and biodiesel sectors as well

as gains in the competing veg oil markets. Although crude

rapeseed prices are under pressure, refiners are extremely

well sold (especially in the nearby months) with prices

still inverted (nearby prices are firmer than the forward

months). Fundamentally the market has not changed with

poor production and extremely low stocks with increasing

demand due to the extremely large premium for sunflower

oil. There are also rumours of some additional demand

from China which is adding to the supportive tone but

it surprising that prices have not firmed even further as

rapeseed oil 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 soy

oil. Again, some support is coming from higher biodiesel

demand, helped by gains in the crude (mineral) oil market

over the past month and the need to supply more liquid oils

during winter months.