Low prices for rapeseed oil contribute to the growth of global demand

Published 2023년 12월 18일

Tridge summary

In 2023, rapeseed oil consumption reached a record 29.8 million tonnes, with increased consumption in both the edible oil and biodiesel markets, driven by attractive prices and production. The premium for rapeseed oil compared to soybean oil decreased, making Argentine biodiesel unattractive for European buyers and leading to reduced supplies to the EU. Despite the increase in consumption, global production of rapeseed oil in 2023 will exceed the consumption rate, resulting in a 7-year high of 4.15 million tonnes of stocks.

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

Original content

Against the background of attractive prices and significant production, the consumption of rapeseed oil in 2023 reached a record 29.8 mln tonnes, which is 11% or 3 mln tonnes higher than last year, Oil World (Germany) reports. At the same time, the share of rapeseed oil consumption increased not only in the edible oil market (primarily in India and China), but also in the biodiesel market in North America and the EU. The premium for rapeseed oil compared to soybean oil in Rotterdam decreased from 263 USD/t in 2022 to 37 USD/t in 2023, which made Argentine biodiesel uninteresting for European buyers, and therefore its supplies to the EU in January-October 2023 decreased to 0.2 mln tonnes compared to 1 mln tonnes in the same period in 2022. The decline in rapeseed oil prices contributed to the increase in its use in biodiesel production in the EU. Against this background, the consumption of this oil in 2023 may increase by 0.4 mln tonnes to the record 10 mln tonnes in the EU, by 1 ...

Source: UkrAgroConsult