Oilseed and grain market insights: Rebound in European rapeseed prices, EU cereal woes

Published 2024년 8월 30일

Tridge summary

European rapeseed prices are on a recovery path, driven by a rebound in the vegetable oil market and a surge in canola prices. The prices have surpassed the €460/t mark for November 2024. This recovery is attributed to a turnaround in the vegetable oil markets, tighter supplies of major vegetable oils like palm and sunflower oil, and a significant recovery in canola prices. However, Europe may face challenges in importing rapeseed due to strong demand from China and production challenges in other countries. In contrast, the EU's cereal production is expected to remain poor due to unfavorable weather conditions, leading to increased imports of cereals such as soft wheat, barley, and corn.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The market is witnessing a recovery in European rapeseed prices, which are finding support from vegoils and canola. European rapeseed futures now exceed the €460/t mark and their 200-day moving average for November 2024, says CRM Agri. The analysts expect Paris rapeseed prices to average €470/t (US$520m) in Q3. This recovery is driven by two key factors: a rally in vegetable oil markets and a resurgence in canola prices, according to a review by those oilseed market specialists. Vegetable oil markets, crucial for oil-heavy crops like rapeseed, have seen a turnaround. Soyoil prices, which had dipped due to increased soybean supply and biodiesel plans in California, are bouncing back rather than dragging down competing oils like palm and rapeseed oil. CRM Agri highlights that the expected soybean supply surge is still speculative, depending on harvests yet to occur in South America and the US. Meanwhile, other major vegetable oils, such as palm and sunflower oil, are facing tighter ...

Source: UKfeednavigator