Rapeseed prices have surged in 2024, reaching the highest levels in years. Market volatility is being fuelled by conflict in the Middle East and yield concerns in Europe.
Rapeseed prices see sharp increase
Rapeseed has seen a substantial price increase this year. The Paris futures market quoted €528.50 per ton (August contract) on Tuesday. On 2 January this year, it was still €433.00. The increase is partly a result of the war in the Middle East.
Temporary price rise
According to a rapeseed grower, the recent price surge is likely temporary. As soon as the Strait of Hormuz reopens and calm is somewhat restored in the Middle East, rapeseed prices are expected to fall again. Last week, there was a price drop due to lower oil prices and a somewhat stabilised energy market.
Middle East tensions
Concerns about renewed fighting in the Middle East led to higher crude oil prices again at the start of this week. The atmosphere between Iran and the US turned unfriendly again. This pushed rapeseed prices higher.
Lower European yields
Another factor influencing price formation is news that the forecast for rapeseed yields in Europe has been somewhat lowered. The European Commission expects that the average yield of rapeseed in the EU will be lower than previously assumed. Brussels now expects a yield of 3.19 tonnes per hectare; previously, this was 3.25 tonnes.
