Biodiesel smears
Biodiesel produced from vegetable oils - especially rapeseed oil - is being used less and less. Pure vegetable oil hardly plays a role as a fuel any more, but chemically converted biodiesel as a pure fuel is also becoming considerably less important. Relative stability can still be observed in sales of blended biodiesel. The share of biodiesel has decreased from 12.5% in 2007 to 7% of total diesel consumption in 2012.
In comparison, mineral diesel consumption is increasing annually. A growing number of diesel-powered vehicles is also contributing to this, as is increasing mileage.
According to monthly statistics from the Federal Office of Economics and Export Control (BAFA), sales of diesel fuel in the Federal Republic of Germany rose by 0.1% year-on-year in the period from January to April 2013. However, the biodiesel included in this figure fell by -16.8%. Obviously, the price differences between mineral and biodiesel are no longer attractive enough to stimulate biodiesel consumption.
The consequence of this development is increasing pressure on rapeseed prices, which has recently become more pronounced. This creates a certain tension with the increased prices in the soy complex due to the temporary supply difficulties in South American countries, the low palm oil prices as a result of the high stock levels in Malaysia and the tight supply situation on the rapeseed market. However, the oilseed market as a whole is clearly trending towards high supply exceeding demand.
Conclusion:
Despite a short supply of rapeseed, rapeseed prices are under pressure in several ways: weak demand from the biodiesel sector and falling competitive prices from alternative sources of vegetable oil, especially palm oil and soon soybean oil.
