Demand for UK wheat and rapeseed oil seen falling on EU parliament vote

In the UK, the vote earlier this week by the European Parliament’s ENVI committee could have a negative impact on British rapeseed and wheat prices if the Council and European Commission agree to the 6% cap on first generation biofuels. About 2.2 million metric tons of wheat are used for ethanol production while up to 40% of the country’s rapeseed oil is exported to the continent for biodiesel production, demand for both of which could dry up with lower biofuel mandates.