Rapeseed prices at multi-year high

Whereas at the end of January, the price was reported at EUR 411 per tonne free to warehouse, it was up to EUR 469 per tonne only five weeks later. Such a strong price increase has not been witnessed in the past decade. There is no end in sight for soaring rapeseed prices.

Agrarmarkt Informations-Gesellschaft (mbH) has reported that the price surge was caused by tight supply. At the same time, prices were supported by firm prices for canola in Canada and for soybeans in the US and, above all, by the rise in crude oil prices in New York. Rapeseed prices in Paris have increased just less than 17 per cent since the beginning of February.

However, despite the firm prices new business was hardly ever done. The reason was thinned stocks in producers‘ hands. Producers had already divested themselves of their stocks over the three previous months. Also, supplies were not very extensive this season due to the moderate harvest. Remaining quantities were held back in speculation on further price increases. Also, hardly any supply contracts were concluded for the 2021 rapeseed crop. Marketing progress was far ahead of the usual level. Producers are now taking a low profile, waiting to see how the crops are going to develop, because they have to allow for yield risks until the harvest. No one wants to run the risk of being unable to deliver commodities they contracted.