In Germany, UFOP reports that the small EU rapeseed crop and firm forward prices drove up producer prices for rapeseed considerably. Also, feedstock demand from oil mills picked up over the past weeks.
At the beginning of the 2019/20 marketing year, farm rapeseed prices climbed sharply. The rise was due to the small rapeseed harvest in Germany and the EU in 2019. At the beginning of July, prices were at EUR 354 per tonne. At the end of August, they already surpassed the mark of EUR 360 per tonne and most recently, they hit EUR 367 per tonne. In other words, rapeseed prices were up EUR 14 per tonne from the previous year and even EUR 20 per tonne from 2017.
According to Agrarmarkt Informations-Gesellschaft (mbH), although prices significantly exceeded the year-earlier level, farmers’ inclination to sell did not pick up until calendar week 37. Before then, farmers held back on their produce because they found that the price level was much too low given the small crop. Only the noticeable jump in prices in calendar week 37 encouraged farmers to recommence selling their produce. The higher price level for rapeseed oil and higher margins spurred rapeseed processing in the oil mills.
Support also came from the futures exchange in Paris. Price quotes for rapeseed prices have increased 6 per cent since July.