Prices for EU rapeseed see “massive decline”: UFOP
In Germany, UFOP says that comparatively low producer prices have dampened trade in the upcoming rapeseed crop for a long period of time.
June bids for rapeseed on the cash market saw a massive decline in the wake of substantially declining rapeseed prices in Paris and slow demand. Prices ‘free to the Lower Rhine’ as at the end of the month were reported at EUR 352 per tonne, down EUR 19 per tonne from the previous month. Against this background, there was hardly any rapeseed offered. Taking advantage of the firm prices of the past few months, farmers contracted into agreements for the supply of their usual quantities in 2016/17. These would amount to approximately 30-40 per cent of the estimated harvest. Before offering anything, farmers are now waiting for the harvest to start and provide first crop figures.
Rapeseed was not spared by the poor weather that affected many European areas. Drought in the east and heavy rainfalls in the south-west and south-east of Europe have reduced the yield potential. To date, MARS experts have projected the yield at 32 decitonnes per hectare. Although this figure would exceed the long-time average by 1 per cent, it is down 1 decitonne per hectare from the May 2016 estimate.
Category: Fuels
