For the Quarter Ending June 2023
North America
During Q2 2023, North American rapeseed Oil prices followed the European market trends. Rapeseed Oil prices continued to decline from Q1 2023 to June 2023, indicating a continued weaker market sentiment for rapeseed Oil. High Rapeseed Oil stocks in North America, ample supply from Europe buyers, and Russia's suspension of the black sea grain trade continued to weigh on the market as exports from Ukraine (one of the main producers) decreased. There was also a sharp down move in crude oil prices and sharply reduced Russian edible oil and grain offers. The combination of these factors had a very negative effect on corn, rapeseed, and other grain prices. Apart from that, higher interest rates and energy prices weighed on import activity as production decreased significantly in exporting countries. In addition, The robust rapeseed crushing activity has pushed the prices of rapeseed oil below the prices of other vegetable oil. On the output side, the absence of winter rain in Saskatchewan, the main producing region in Canada, could lead to a lower crop size next season. On the other hand, the El Niño weather phenomenon may pose a risk to Australian crops, although it is still too early to assess its impact.
Asia Pacific
Rapeseed Oil prices across the Asia-Pacific region showed a downward trend in the Indian market. At the start of the year 2023, the price of Rapeseed Oil continued to decrease, and in April, it dropped by more than 10 percent from the previous month, as price-sensitive Palm oil has long been the go-to oil for Asian buyers due to its low price and fast delivery. However, palm oil prices have risen to a premium level over other edible oils as soft oil prices decreased, in part due to an unprecedented rapeseed crop which switched the customer's preference towards this vegetable oil as it was available at a cheaper rate. Apart from that, one of the primary factors that supported this decline in the prices includes higher Rapeseed production across the Indian market and minimal demand encountered throughout this quarter, which has contributed to the increase in supply with higher stockpiles, putting further downward pressure on its prices. At the end of June, the prices for Rapeseed Oil prices in India were assisted at USD 1132.74/MT Ex-Jaipur with a consistent diminishing trend.
Europe
The second quarter (2023) of the Rapeseed Oil market ended on a negative note, with a steady decrease in its prices across the region. European rapeseed oil prices in Rotterdam continue declining, pressured by subdued biodiesel demand. Particularly, throughout the second quarter, Rapeseed oil prices continued the market trend in the USA. One of the main reasons for the decrease in rapeseed oil prices across the European region was the presence of sufficient reserves in the market and decreased buying sentiments. However, the interesting fact is that farmers are hesitating to sell their produce. This was somewhat surprising as it was expected that with the harvest season coming up, farmers would 'force' the sale of new crop rape seed. However, now, farmers have the option to store wheat or rapeseed for a longer period of time before the harvest season arrives. As a result, this hesitancy to sell allows Ukrainian farmers or sellers to sell substantial quantities into the European Union.
For the Quarter Ending March 2023
North America
The price of Rapeseed Oil fluctuated in Q1 2023 as a result of an unstable supply and demand equilibrium. Due to high inventories and weak demand from end-use sectors, prices fell in the first quarter of 2023. Additionally, the decision to use canola oil in the creation of biofuel helped to increase demand. Prices consistently decreased in the second part of Q1 as a result of an excess of products in the domestic US market. The lower seed prices are supported by the fact that there was also a great deal of uncertainty regarding the rapeseed crop for the future season. Due to the big inventories, local shops had to reduce their prices.
Asia Pacific
The price of Rapeseed Oil fluctuated throughout Q1 2023 as a result of the product's uncertain market dynamics. The price dropped in the first month as a result of reduced demand from the home market in the Asia-Pacific area and adequate stockpiles. As the second month draws near, prices in India rise, helped by a sharp drop in the amount of imported oil. This low inventory level was essential to preserving the strong domestic Rapeseed Oil market business. Prices grew in the final month of the quarter as a result of inconsistent price growth, which to some part, reduced product stockpiling. Towards the end of Q1 2023, the price of Rapeseed Oil was recorded to be USD 1693.59/MT for Ex Jaipur India in March 2023.
Europe
In Q1 2023, the price of Rapeseed Oil fluctuated due to the uncertain market dynamics in the domestic market. Prices decreased in the first month of Q1 due to a reduction in domestic demand and adequate levels of food consumption. Also, the situation in Ukraine prevented shipments, which significantly affected the price of edible oils in the European home market in the second month of the quarter. Due to a lack of sunflower oil on the domestic market in the second month of the quarter, Rapeseed Oil and other replacement edible oils were used. The price of Rapeseed Oil for FOB Novorossiysk (Russia) in March 2023 was estimated to be USD 2200/MT around the end of Q1 2023.
For the Quarter Ending December 2022
North America
The price of Rapeseed Oil varied due to an unstable balance between supply and demand in Q4 2022. In the first quarter of 2014, prices decreased as a result of high inventories and weak demand from end-use industries. In addition, the agreement to use canola oil in biofuel production further boosted the demand. The second half of Q4 saw prices consistently drop due to the oversupply of items on the domestic US market. In addition, there was considerable uncertainty over the Rapeseed production for the upcoming season, which supports the lower seed costs. Local merchants had to sell the items for less because of the large inventories. When Q4 2022 concluded, the price of Rapeseed Oil for the USA in December 2022 was reported to be USD 2920/MT.
Asia Pacific
In Q4 2022, as a result of the product's unstable market dynamics, the price of Rapeseed Oil varied throughout Q4. Due to a rise in demand from the Asia-Pacific region's domestic market and insufficient inventories, the price was raised in the first month. In the second month approached, prices in India increased, supported by a steep reduction in the volume of imported oil. This low inventory position was crucial to maintaining the brisk business of the domestic Rapeseed Oil market. In the last month of the quarter, the prices were decreased due to a consistent price increase that led to stockpiling of the product to some extent. Towards the end of Q4 2022, the price of Rapeseed Oil was recorded to be USD 20.89/MT for Ex Jaipur India in December 2022.
Europe
The unstable market dynamics in the domestic market caused the price of Rapeseed Oil to fluctuate in Q4 2022. In the first month of Q4, prices rose as a result of a decline in domestic demand and high levels of food consumption. The conflict in Ukraine also caused exports to be disrupted, which had a significant impact on the price of edible oils in the domestic European market. Rapeseed Oil and other substitute edible oils were utilized since the domestic market had a shortage of sunflower oil, which led to an increase in price in the second month of the quarter. A fall in product price was seen in the second quarter of 2014 because of more adequate stockpiles and poor downstream industry demand. The price of Rapeseed Oil for FOB Novorossiysk (Russia) in December 2022 was estimated to be USD 2158/MT around the end of Q4 2022.
In Q3 2022, the price of Rapeseed Oil decreased owing to the decrease in demand and increase in the supply of the product. Due to large stocks and weak demand from end-use sectors, prices fell in the first part of Q3. In addition, the abundance of goods available on the domestic US market caused prices to decline regularly during the second half of Q3. Additionally, there was still some doubt regarding the new season's rapeseed output, which continues to support the lower seed prices. Due to huge stockpiles, local traders were forced to sell the product for less. Towards the end of Q3 2022, the price of Rapeseed Oil was recorded to be USD 1910/MT for the USA in July 2022.
In Q3 2022, due to the product's unstable market dynamics, the price of rapeseed oil varied throughout Q3. Due to a rise in demand from the Asia-Pacific region's domestic market and insufficient inventories, the price was raised in the first month. However, when Q3's second month approached, prices in China fell, supported by a steep reduction in the volume of imported oil. This low inventory position was crucial to maintaining the brisk business of the domestic Rapeseed oil market. Towards the end of Q3 2022, the price of Rapeseed oil was recorded to be USD 1675/MT for Ex Jaipur India in September 2022.
In Q3 2022, the price of Rapeseed Oil fluctuated owing to the unstable market dynamics in the domestic market. A drop in domestic demand and high levels of food consumption during the first part of Q3 led to price increases. Additionally, the war in Ukraine's export has greatly improved the home European market price of edible oils. As a result, the domestic market has an oversupply of sunflower oil, rapeseed oil, and other substitute edible oils used, which resulted in a drop in price. Low stocks and high demand from the downstream sectors resulted in an increase in the product price in the second part of Q3. Towards the end of Q3 2022, the price of Rapeseed oil was recorded to be USD 2140/MT FOB Novorossiysk in September 2022.
