Rapeseed futures on the Paris Stock Exchange once again updated the record

The continued rise in biodiesel prices supports quotes for rapeseed, the supply of which in the EU is very limited, and imports from Canada and Australia remain at a low level. As a result, speculative growth in rapeseed prices continues on the Paris Stock Exchange.

Amid a shortage of supply, February rapeseed futures on Paris Euronext rose by €18.25/ton yesterday to a record €806.5/ton or € 911.9/ton, adding 7% since the beginning of the year, and 18.6% of the price over the past month.

However, may futures yesterday rose only by 5 €/ton to 754.5 €/ton or 853.1 €/ton, adding 6% for the month, and August for rapeseed of the new crop, although they rose yesterday by 11.75 €/ton to 585.75 € /ton or 662.3 € /ton, but for the month they added only 0.8% of the price.

January canola futures on the Winnipeg stock exchange in January rose by 30 CAD/t to 1042.9 CAD/t or 8 815/t, adding 1.5% of the price for the month, and march yesterday first rose by 11 CAD/t to 1023 CAD/t, but then fell to 1013.8 CAD/t, adding 1.5% for the month.

Quotes also support the increase in soybean prices caused by a lack of precipitation in South America. But the main driver of the price increase is the continued increase in demand and prices for biodiesel in the EU due to increased mixing rates in EU countries.

In 2021 prices of all biodiesel varieties in northwestern Europe reached record levels due to the following reasons:

• a drop in biodiesel imports by 19% compared to 2020 and by 32% compared to 2019 due to restrictions on biodiesel exports from Argentina to the EU at the level of 1.2 million tons per year,
• reduced supply of used vegetable oil (UCO) amid restaurant restrictions due to the pandemic,
• growth to record levels of prices for vegetable oils, which are the main raw material for production,
• reduced canola supplies from Canada to the EU due to poor harvest.

The cost of tickets to avoid mixing biofuels in Germany, the Netherlands and the United Kingdom reached a record level in 2021, and in 2022, compliance with mixing requirements will rise even more in price. In addition to mixing biodiesel and buying tickets, market participants do not have any other opportunities, which will contribute to an increase in biodiesel prices in the near future.

The rise in fuel prices will boost sales of electric vehicles, which in the next 2-3 years will help reduce the volume of automobile fuel consumption.

GrainTrade

Tags: rapeseed, biodiesel, Germany, Argentina, Netherlands, Australia, EU, UK, prices, Canada