Rapeseed oil prices in the USA have been shooting up amidst robust demand from the biodiesel industry
The vegetable oil market is ratcheting up currently with an upward movement in the prices of a multitude of vegetable oil. For instance, since the last week of February, the canola oil (rapeseed oil) prices have been on an upswing coupled with an uptick of USD 50 per ton in the ICE Rapeseed Futures.
The U.S. Energy Information Administration has observed a significant surge in renewable diesel production using rapeseed oil, marking December as the peak month for such production in the year. Additionally, biodiesel manufacturing from rapeseed oil also showed substantial activity, contributing to a notable monthly consumption of rapeseed oil. This soared production reflects an overall robust demand for rapeseed oil in biofuel production throughout the calendar year.
In response to this strong demand for rapeseed oil, the USDA has updated its Oil Crops Outlook, indicating an upward revision in the U.S. rapeseed crush estimates. This adjustment is attributed to the increased appetite for rapeseed oil, particularly highlighting a significant year-over-year growth in rapeseed crush for the period from June of the previous year to January.
Furthermore, a slight decline in rapeseed seed imports from Canada is reported, owing to a rise in domestic crushing activities there. The USDA also anticipates an increase in the utilization of rapeseed oil for biofuel production, underscoring the growing importance of rapeseed oil in the renewable energy sector.
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According to Procurement Resource, the vegetable oil market is experiencing an upward trend, notably in rapeseed oil prices, which have risen since late February, with ICE Rapeseed Futures seeing a USD 50 per ton increase. The U.S. Energy Information Administration reports a surge in renewable diesel production from rapeseed oil, peaking in December. The USDA has revised its U.S. rapeseed crush estimates upward due to increased demand, particularly in biofuel production, with a notable year-over-year growth from June to January.
