Rapeseed remains economically attractive for German farmers

The price gap between forward-contract prices for soft wheat and rapeseed from the 2025 crop has recently widened to a ratio of 1 to 2.4, making rapeseed production for the 2026 harvest even more appealing.

In early May, rapeseed growers in Germany received an average of 443 euros (USD$496) per metric ton ex farm for forward contracts from the 2025 crop, more than twice the price buyers paid for one ton of soft wheat.

This compares to 441 euros (USD$493) per ton in early May 2024.

Price stimuli were temporarily provided by the futures market.

Canadian stocks were in decline due to rising exports, tightening supply and influencing prices in Paris.

Rapeseed prices also benefited from the weakening euro, which enhances the competitive position of European commodities on the global market.

Meanwhile, weather conditions in Ukraine raised concerns as April was marked by dryness and frost.

These conditions could reduce yield potential for the 2025 harvest and further tighten supply.

Additional rainfall is also needed in Germany to realize the full yield potential of rapeseed crops.

If the lack of rain continues, prices could rise noticeably in the coming weeks, offering farmers further incentive to sow winter rapeseed in 2025.

Producer prices for soft wheat from the 2025 crop decreased over the past weeks.

At 186 euros (USD$208) per ton, they were around 22 euros (USD$25) per ton lower than at the same time in 2024.

Given the unattractive prices, current activities have focused on clearing warehouses and fulfilling forward contracts on the domestic market, with minimal attention to new business.