World prices for rapeseed oil in the EU for the first time in a quarter of a century were below the level of palm oil which is usually the lowest among the four major oils.
According to Mintec Analytics, rapeseed oil quotations fell to 929.5 € / ton FOB Rotterdam by March 16, which is the lowest value since January 2021, while prices for palm oil were – 951 € / ton CIF Rotterdam.
“The reason for the correction was the oversaturation of the EU market, as local processors bought significant batches of rapeseed in Ukraine, of which 50% went for processing in the bloc countries. Raw materials were purchased at a relatively low price, which ensured higher margins and sales of finished products. Despite the import of significant quantities of oilseeds to the EU, demand for rapeseed oil remains low both from the biodiesel industry and from the food industry,” explain the experts.
With this in mind, Mintec Analytics continues, market participants do not expect an increase in demand for rapeseed oil in the near future, so prices for it will remain lower than for palm oil.