Rapeseed and canola prices continue to rise amid rising oil prices and declining harvest forecasts

A speculative 9% increase in oil prices in a week due to Israel’s open war with Iran is supporting biodiesel, rapeseed, and canola prices, especially given the reduced harvest forecast in Australia and new ideas to limit rapeseed exports from Ukraine. Information about the US authorities’ intentions to sharply increase the mandate for biodiesel production in the US in 2026 and 2027, but only for production from local oil, upset Canadian rapeseed oil exporters and led to a sharp increase in soybean oil prices in Chicago by 15.8% in a week to $1,211/t. Canada continues to experience cool, rainy weather, which is conducive to the development of canola crops, although precipitation is less than forecast. July canola futures rose 4.6% to CAD 743/t or $ 547/t (+3.5% month-on-month), and November new crop futures rose 6% to CAD 736/t (+8.2% month-on-month) amid rising oil prices. It is worth noting that August rapeseed futures on the Paris stock exchange have remained virtually unchanged ...