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.
For the Quarter Ending September 2022
North America
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.
Asia Pacific
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.
Europe
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.
For the Quarter Ending June 2022
North America
In Q2 2022, the price of Rapeseed Oil kept fluctuating in the USA, owing to the decrease in demand and increase in the supply of the product. The price decreased in the first half of Q2, backed by high inventories and low demand from the end-use industries. Moreover, during the second half of Q2, Canada's new rapeseed planting area decreased, and the overall progress of spring sowing was relatively slow. In addition, there was still uncertainty in rapeseed yield in the new season, which continues to support the prices of the seeds. The domestic traders were compelled to sell the product at a lower price due to high inventories. In addition, the price was decreased due to weak buying sentiments in the region.
Asia Pacific
In Asia, Rapeseed Oil prices fluctuated during Q2 2022, owing to the instability in the market dynamics of the product. In the first month, the price was increased due to increased demand from the domestic market of Asia-Pacific Countries and low inventories. However, entering the second month of Q2, the price was decreased in China, backed by the sharp decline in the quantity of imported oil, and the situation of low inventory was essential to support the high operation of the domestic Rapeseed oil market. Due to fluctuations in the price of the product, the market dynamics remain unpredictable for the upcoming quarters.
Europe
In Q2 2022, the price of Rapeseed Oil decreased owing to the increase in the supply of the product in the regional market. In the first half of Q2, the price was increased due to an increase in domestic demand and significant food consumption. Moreover, the Ukraine war has significantly impacted edible oils in the domestic market of major European economies like the Netherland. The price increase is due to a shortage of Sunflower oil in the domestic market, which led to the use of alternate edible oils, including rapeseed oil. In the second half of Q2, the product price decreased due to high inventories and less demand from the downstream industries.
In Q1 2022, the price of rapeseed oil remained elevated with limited supply and increased demand from the downstream biodiesel and food application. Cost support and strong global demand forced the farmers to shift to alternative crops such as cereals. Constraint supply led to deterred exports to China and US with revision in the price trend in the international market. Rising input costs for the Canadian farmers, including Rapeseed oil, remained the key factor for the price elevation. Canada’s crushing capacities accelerated the operating cost from its downstream market.
In the first quarter of 2022, Rapeseed oil prices showcased seesaw behavior owing to mixed market sentiments in the Asia Pacific region. At the commencement of the first half of Q1 2022, the prices fluctuated upside. The supply side of the market was tight as compared to the demand side as an effect of the spring festival forming strong cost support, but still, the equilibrium was maintained owing to stable inventories. Later, at the onset of the second half of Q1 2022, the prices gradually dropped due to the Russia Ukraine war and the oil substitution effect. With the Russia Ukraine invasion, the supply side was already compromised. On top of that, the consumption of the rapeseed oil market was under pressure with a strong oil substitution effect.
The prices of rapeseed oil in Q1 2022 showed mixed market sentiments. At the beginning of Q1, the prices were recorded to be high, attributed to lower-than-expected crops with high demand. Later in mid-February, the prices rebounded to the lower side, contributed by increased planting, slightly larger harvest, and higher production in major Rapeseed producing countries Canada. Later, the onset of the second half of the Russia Ukraine invasion contributed to increasing prices despite the increase in land cultivation owing to increased demand from end-user enterprises.
