Rapeseed prices rise sharply: report

November 6, 2016 |

In Germany, UFOP reports that the average price farmers received for rapeseed was at just under EUR 380 per tonne free storage facility, a level not seen since May 2014.

The factors that contributed to supporting the rapeseed price originated, first and foremost, from overseas. German rapeseed prices have climbed continuously since the 2016 harvest began. However, the price surge has been especially sharp over the past two weeks, Agrarmarkt Informations-Gesellschaft mbH reports. Rapeseed prices were, first and foremost, supported from overseas.

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On the one hand, prices for soybeans went up significantly due to brisk demand from China, surpassing the psychological barrier of USD 10 per bushel (EUR 340 per tonne). On the other hand, the rapeseed harvest in Canada is severely hampered by snow and rainfall. At the ICE in Winnipeg, quotes soared by ten per cent in only three weeks. Vegetable oil prices also rose strongly in response to brisk demand for, and tight availability of, palm oil. At the same time, crude oil trended higher, whereas the weak euro increased EU export prospects. In other words, forward prices of rapeseed in Paris climbed above the EUR 400 per tonne mark to an 18-month high and pushed up producer prices in Germany.

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