EU rapeseed market “lacks momentum” and features “unsatisfactory margins”, says UFOP

In Germany, UFOP updated on the EU rapeseed market and outlook, writing:  “The rapeseed market lacks momentum. Supply of rapeseed continues to be low. Producers could only be encouraged to sell more if premiums were raised. However, unsatisfactory margins prevent this from occurring. Processors’ hopes are based on expectations that supply pressure is going to ease on grow-ing demand as biodiesel producers will switch to transition class diesel based on rapeseed oil in October 2015.”

Rapeseed oil: “Trading is slow in an environment where cash prices on the futures market are volatile and market participants are concerned. Although supply is abundant, given the current prices processors cannot attract buyers. And they are hardly willing to offer price reductions. At the end of September, rapeseed oil fob Ham-burg cost EUR 705 per tonne, a price not seen in almost two months.”

Rapeseed cake: “Decentralized oil mills raised asking prices for rapeseed expeller somewhat, to on average EUR 256.90 per tonne. This is around EUR 1.40 per tonne up from the previous month’s level. Purchase prices for rapeseed meal delivered free to yard and selling prices for rapeseed expeller ex mill have converged since July 2015. For the first time in a year, they reached virtually the same level in September 2015 (EUR 260 per tonne and EUR 262 per tonne respectively).”

Cold pressed rapeseed oil: “Prices asked for cold pressed rapeseed oil generally saw a slight rise in September 2015. However, some prices reported were also lower than the previous month. Consequently, the range of selling prices for cold pressed rapeseed oil widened to 74-86 euro cents per liter. Asking prices averaged 80.58 euro cents per liter, up 1.60 euro cents per liter from August. Extraction mills asked 62.46 euro cents per liter of crude rapeseed oil in September. This was a rise of only 0.23 euro cents per liter. Demand for rapeseed oil from either production method is slow. Supply is superabundant. Decentralized oil mills are therefore unable to meet demand for more rapeseed expeller.”

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