Euronext rapeseed futures crash through €450/mt, no bottom in sight
European rapeseed futures crashed through the €450/mt level Tuesday, as bearish sentiment continued to overwhelm the market.
All three front months were trading below that level by 1730 CET: May was down by €12.25/mt to €441.50/mt, Aug fell €13.25/mt to €444.50/mt and November dipped by €13.25 to €449.25/mt.
Market sources said they had expected to see some support for the contracts at the €450/mt level despite the weakness in the market and were uncertain now as to just how low prices could go.
“€450/mt was my bottom and we are past that,” one source told Agricensus, adding it made “no sense to go further from here all things being relative.”
“I honestly think it can go as low as needed. I can't bet on a certain number, but rapeseed oil is quite pressured,” another source said.
Ample stock levels, high imports, and a good crop expected in Australia have all weighed on rapeseed and rapeseed oil prices in Europe in recent months.
In addition, falling biofuel prices have undermined vegetable oil demand as a biofuel feedstock, while concerns in the banking sector have also contributed to the latest move, market sources said.
The last time Euronext rapeseed’s front-month contract traded this low was two years ago.
Prices have fallen by almost 60% from the highs of last spring and summer when the war in Ukraine sparked concern about supplies.
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