Canola oil price continues to climb whilst sunoil goes sideways

We have not seen significant changes in rapeseed market situation in Canada. The final production in Australia, which is expected to be a record high, however, may lead to unexpected outcomes in the global supply chain. In Europe, France and Germany are both expecting from 10 to 15% growth in the production areas, while UK simply disregarded its own crop. With the exception of Romania, Europe carries out favorable weather conditions for the winter varieties. Still balance will be very tight for 2021/22 due to the decreased production in Canada. Additional pressure has been noticed on the crude oil prices as well.

For the winter months, in Canada, the biodiesel industry will include a relatively high share of RME (rapeseed methyl esther) and eventually canola oil rates will affect biofuel prices. All the way through RSO continues to move with a meaningful premium over the SFO with seed prices climbing up to record highs. There will be USD 280 per MT of price difference.