Euronext rapeseed futures hit fresh 10-month highs on Thursday (Apr 22) as gains for US soy reinforced a bullish trend supported by tight near-term supply.

Scarce old crop at a time of healthy crushing demand, coupled with technical buying, had fuelled a big premium on the May contract versus new-crop contracts, traders said.

But the rally could last beyond the expiry of the old-crop contract on April 30, with a substantial winter losses in key exporter Ukraine and strong demand for rapeseed oil.

"Old crop stocks are considerably lower than thought only a few weeks ago and those needing short-term cover have to pay up," one German trader said.

On Euronext, May closed EUR1.75 (US$2.33) higher at EUR319.75 (US$425.95) a tonne, after rising as high as EUR320.50 (US$426.94) a tonne, a level not seen since June 9 last year. The gains were supported by firm US soy, which climbed back above US$10.

In Germany, the EU's biggest rapeseed producer, physical old crop premiums were little changed at EUR1-2 (US$1.33-2.67) above Paris contracts.

Much attention in the coming weeks will be on Ukraine as the top rapeseed supplier to the EU faces sizeable crop losses due to frost and ice damage.

Ukrainian farmers had been forced to re-seed at least 30% of the 2010 winter rapeseed area but that higher yields could offset the impact, according to an agriculture consultancy.