Brexit concerns, volatile oil market hits German biobased feedstock prices

In Germany, UFOP is reporting that rapeseed prices, after rising in the first half of June, has been experiencing “some uncertainty due to fluctuations in foreign currency exchange rates, Brexit and poor weather.

Whereas old crop was traded, the contract business was stagnant as bids were sharply reduced.” UFOP added that “Trading in vegetable oil was slow, and were impacted by exchange rates, volatile crude oil prices, contrary soybean and palm oil prices and feedstock with no clear price trend.” The agency also noted that “Oil and cake output slumped 13 per cent compared to the previous month.  As a result, selling prices were lowered more sharply than those in direct business with livestock farmers. June 2016 asking prices for rapeseed cake  containing 11-13 per cent crude fat averaged EUR 237.75 per tonne. This translates to a EUR 3 per tonne drop from the previous month.”

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