Source: Ukragroconsult (Ukraine)
Rising oil prices over the past few sessions have led to a sharp speculative jump in rapeseed and canola prices after declines in the last week of 2024.
February rapeseed futures rose 2.5% to €524.25/mt or $539/mt (+1.9% for the month) in the first trading session of 2025 on the Paris exchange, rebounding from a pre-New Year drop of 4.4%. They were supported by the growth of world oil prices, European gas prices and the euro depreciation against the dollar by 2.9% over the month to $1.028/€.
March futures for Brent crude rose 3.8% to $75.9/barrel in the last week of December (+3.8% for the month), while WTI crude rose 4.2% to $72.5/barrel on forecasts that temperatures in the U.S. will drop to -10…-20 o C in the next 10 days.
January futures for canola at the exchange in Winnipeg yesterday rose by 1.5% to 625 CAD/mt or 434 $/mt (+4.3% for the month) on the background of active exports of canola from Canada. The fall of the euro against the dollar reduces the price difference between Canadian canola and European rapeseed to $100/mt.
From September 1 to December 22, Canada exported 4.39 million tons of canola, up 81% from last year’s pace and supporting canola prices despite reduced demand for rapeseed oil from U.S. processors caused by falling soybean oil prices.
Rapeseed and canola markets will remain under speculative low supply pressure through the spring until the volumes of the new soybean crop in South America are known, which could significantly increase pressure on prices for all oilseeds.