• The quotation of rapeseed oil in the European Union has reached below the value of palm oil.
For the first time in 25 years, rapeseed oil is sold cheaper than palm oil in the European Union. This situation was created due to the excessive increase in the supply from the purchases of rape lots from Ukraine, processed in the proportion of 50% in the EU countries. Analysts say that a change in these market quotes is not visualized in the near future given the large stocks currently held.
right Mind Analytics, rapeseed oil quotes up to March 16 this year were requested at €929,5/t FOB Rotterdam, which is the lowest value since January 2021, while palm oil prices were at €951/t CIF Rotterdam , according to OleoScope.
Experts indicate that the reason is the oversaturation of the EU market, following the massive purchase of Ukrainian rapeseed. The low price of raw materials ensured an increase in the margin and volume of sales of finished products. Despite the import of significant batches of oilseed oil into the EU, demand for rapeseed oil remains low from both the biodiesel and food industries.
The situation will still remain the same, especially since analysts do not expect an increase in demand for rapeseed oil in the near future, so its prices will remain lower compared to palm oil.
Mintec Analytics data shows that there is no demand for rapeseed oil and the outlook for EU rapeseed production is good. There is no demand for oil from the biodiesel industry as canola methyl ester prices continue to fall and inventories are quite high.
Article written by Gabriela Dan, Editor of Arta Albă
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