Rapeseed prices have dropped from their record levels as they come under pressure due to prospects of a larger crop in Europe and a decline in demand, a report by Germany’s Union for the Promotion of Oil and Protein Plants (UFOP) said.
The average price for old-crop batches at the end of June was €783/tonne, the report said, which was around 65% higher than the same time last year, but €200/tonne (US$203/tonne) down on the record €983/tonne (US$998/tonne) reached in April.
Prices for the forthcoming rapeseed crop have also recently declined, according to the 30 June report, with the average price of €710/tonne (US$721/tonne) asked at the end of June €116/tonne (US$118/tonne) down on April’s record high of €826/tonne (US$839/tonne).
Spot prices for soft wheat also dropped €38/tonne (US$39/tonne) – or 10% - within five weeks due to the forthcoming harvest, while yield prospects remained uncertain due to regional drought and extreme heat throughout Europe, UFOP said.
The organisation pointed out that a major portion of the crop had already been contracted at lower prices in the previous months while adding that farmers’ production costs, specifically fertiliser prices, were also having an impact.
Higher prices were likely to continue, UFOP said, due to rising energy prices.
