Rapeseed prices at multiyear high

Image: UFOP

Limited supply of rapeseed both in Germany and abroad continued to drive prices up. Rapeseed prices in Germany have been on the increase almost continuously since the crop year began. In February, their rise was especially sharp.

Whereas at the end of January, the price was reported at 411 euros per metric ton free to warehouse, it was up to 469 euros per ton 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 rates for canola in Canada and for soybeans in the U.S. and, above all, by the rise in crude oil prices in New York. Rapeseed prices in Paris have increased nearly 17 percent since the beginning of February.

Despite the firm prices, however, new business was scant. 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.

In addition, 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.