Prices in the German rapeseed market climbed significantly, but sales remained at a low level.
Most oil mills were stocked up well, with warehouses filled and supplies for the coming weeks secured. There were only occasional rapeseed purchases to meet short time shortages.
At the same time, interest in selling was restrained, although prices were at a high level.
The reason was that most producers had already made large sales at strong prices in November 2020. Marketing of the 2021 crop was also well under way.
Rapeseed oil prices firmed in December.
In the first week of January, they climbed to €885 per tonne. Although this was below their November 2020 peak levels, the trend was upward.
Support mainly came from pronounced price increases for palm oil. These were due to excessive rainfall and labour bottlenecks that curtailed production.
Rapeseed expeller prices leaped up in January, recently reaching just about €300 per tonne fob North-East Germany.
The same can be said of rapeseed meal, which currently averages €275 per tonne in Germany. Demand from the compound feed industry was steady, but supply of rapeseed meal and expeller was limited.
Soybean meal also had an impact on rapeseed expeller prices, as prices increased due to a new tightening of supply. In Argentina, the world's most important soy-exporting country, dock workers have been on strike for several weeks.
Moreover, the South American 2021 soybean harvest could be smaller than previously assumed because of drought.
As usual, demand in the biodiesel market was slow to pick up after the turn of the year.
Nevertheless, prices firmed both because vegetable oils went up and because supply of biodiesel was limited. Above all, UCOME was scarce and, therefore, expensive.
Market participants anticipate that the carbon tax that has been imposed on fossil fuels could boost demand for biodiesel.
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