The oil mills in the EU are well supplied with raw materials due to the low processing. Therefore, they have little interest in buying rapeseed. The likelihood of gaps in coverage at the end of the season is no longer highly estimated. The biodiesel industry simply does not earn enough from rapeseed oil and prefers to wait for the plants instead of producing them. Only the proceeds from rapeseed meal are impressive.
AMI reports that China will soon buy rape from Ukraine, which could reduce supply pressure in Europe. Should that happen, the rape courses on the Paris Matif would rise, which could also benefit some rapeseed producers in this country. Currently, as good as no rape can settle and the offers only push the price further.
The high prices for rapeseed meal have given in somewhat, after the soybean meal prices were also weaker.
Vegetable oil prices were significantly weaker last week as inventories in the US rose significantly; this also weighs on international prices. The demand of the biodiesel industry is still very weak.With the price of regular diesel now higher than that of palm methyl ester biodiesel, the market could catch it now.
