
scorpiusuk
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.