Poor weather, small EU harvest pushes rapeseed price ahead of wheat

July 24, 2016 |

In Germany, UFOP is reporting that the price gap between rapeseed and wheat has widened at the end of 2015/16. As harvest pressure wanes, this trend could continue in 2016/17 because, due to poor weather, the EU harvest will be considerably smaller.

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UFOP relates:

“The European grain and oilseed traders’ association Coceral/Copa-Cocega estimates the 2016/17 EU rapeseed supply at 21.2 million tonnes, expecting it to be even tighter than the previous marketing year. The reason is weather-related declines in yield. Although wheat was also affected by the unfavorable weather, especially in May and June 2016, prospects for supply are significantly better as global production is expected to hit a record. Meanwhile, there is scope for upward price movements of rapeseed based on decreasing production both in the EU and worldwide. In other words, the reduced supply to the market will be reflected in prices this year too. Buyers paid around EUR 334 ex farm per tonne of rapeseed already in July 2016. This was just less than EUR 200 per tonne more than what they paid for wheat.”

More on the story.

Category: Fuels

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