March 21, 2007

Biodiesel pulls down EU rapeseed prices
 

Rapeseed prices in the European Union have plummeted because of depressed sales due to surge in demand of rapeseed-made biodiesel, especially in the key German market, Hamburg-based oilseeds analysts Oil World said.

Oil World has cut its forecast of EU 2006/07 (July-June) rapeseed crushings to 15.80 million tonnes, down by 230,000 tonnes from its February estimate but still up from 14.68 million in 2005/06.

On the other hand, it has raised its estimate of EU 2006/07 rapeseed ending stocks of 1.02 million tonnes from its previous estimate of 750,000 tonnes and 1.30 million at the end of 2005/2006/

Oil World said supply prospects for rapeseed have been "bearish" and has pushed prices below sunflower seed

in Europe but it however projected a price increase within six to twelve months due to appreciating costs of other oilseeds such as soybeans, soy oil and palm oil.