The rapeseed quotation on the Matif in Paris has shown a price increase in recent days. One of the reasons for this is the limited availability of the product in the European Union. The strong demand for other vegetable products such as sunflowers and soybeans also resulted in an upward quotation.
The quotation for rapeseed on the Matif in Paris increased by €4 last week to €410,25 per tonne. This is the highest level since 2012 and more than €21 per tonne higher than the 5-year average. Less than a month ago plummeted the quotation as a result of the development of the coronavirus now rises to €379,50. The fact that the quotation has recovered in recent days is partly due to the tight availability of rapeseed in the European Union and concerns about the soybean harvest in South America. The latter is partly due to the high demand for soy from China.
Sunflowers drive up prices
The quotation for sunflowers has also risen rapidly, which could help to further drive up rapeseed prices. The reason for this price increase is related to low yields in a number of important countries. Ukraine, Russia and the European Union together account for almost 75% of global sunflower seed production. So far the harvest in Ukraine is 18% lower than last season. In addition, yields in the European Union are estimated by the European Commission to be 16% lower than in 2019. As a result, the global sunflower harvest is 5,3 million tons lower than last year, at 49,7 million tons.
Demand, on the other hand, is not decreasing and therefore demand will exceed supply for both rapeseed and sunflowers. That is striking recently it became known that the European Union no longer imports products from other countries. A price increase is therefore obvious. However, there is still one factor that can limit this increase, and that is the large harvest Australia.