Explosion at UK Oilseed Plant, Other Factors Helped Raise Rapeseed PriceThursday, June 25, 2020
An explosion at a UK-based ADM oilseed plant along with other factors contributed to a jump in Dutch rapeseed oil prices, AgriCensus reported on June 19. Processing around 1M tons/year of rapeseed, the plant is one of the largest in the UK and the meal produced is used as a feed ingredient by livestock producers in the UK, France and Ireland.
AgriCensus said other factors which contributed to the rapeseed price jump included increased demand from the European biodiesel market and new orders for Argentine soya oil methyl ester (SME biodiesel) cargoes. Rapeseed oil prices had been on a steady rise since early April as demand from the biodiesel sector picked up following the easing of lockdown measures in Europe to curb Covid-19.
“The rally is due to the fresh demand from the biodiesel sector, lower rapeseed meal prices and because the farmer is waiting to sell his rapeseed … also because of the bad margins for crushing,” a Dutch broker told the price reporting agency. In another positive sign for the European biodiesel market, traders had placed orders for three 30,000-ton cargoes of Argentine SME biodiesel on 20 June, the first bookings since the pandemic hit Europe in March.