Rapeseed Oil Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of Rapeseed Oil in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Rapeseed Oil Price Trend for the Second Half of 2022

Asia Pacific

The Asian-Pacific rapeseed oil market was unstable in the said period. Initially, the prices saw a small incline due to the rise in demand from the domestic industries, but this trend was short-lived as the prices experienced a sharp decline in the subsequent months. In the fourth quarter, the prices again saw a similar surge in the initial months and then a steep decline in subsequent months. This decline is majorly due to the steep reduction in the imported volume of the oil.

Europe

The price trends of rapeseed oil remained volatile during the said period in the European domestic market. The prices were stable initially as the demand and food consumption increased in the area. However, due to the oversupply of the precious Black Sea sunflower oil in the domestic market, rapeseed oil prices plunged. This period also witnessed a decline in the demand from the downstream industries and high-level inventories which further contributed to the decrease in the prices.

North America

The North American region saw a declining trend as the supply of the product overpowered the demand. In the later months of the third quarter, a decline in the rapeseed growing area was observed, eventually affecting its yields. This situation positively supported the market, but the inventories remained on the high side.

Analyst Insight

According to Procurement Resource, rapeseed oil prices are estimated to decrease in the upcoming months. The rise in inventories, the decline in the import volume of oil, and decreased demand from the end-user industries is expected to affect the market adversely.

The average spot price of rapeseed oil in the Chinese market was 12,706 RMB/MT on January 17, while it was 12,730 RMB/MT on January 10, down 0.19%. The spot price of rapeseed oil has been primarily running at a high price recently, with the shock adjustment tendency being the dominant trend. The spot price was sustained by low global rapeseed supply and significant cost support. Rapeseed oil prices are now high, the market demand is widespread, and the primary demand is inflexible. Domestic oil demand may rise as a result of the Spring Festival's demand effect.

Consumer awareness of healthy lifestyles and rising disposable income, particularly in developing countries such as China and India, are expected to support the growth of rapeseed oil industry in the coming years.

Companies are launching various types of products into the market based on the product's demand. In China, for example, Rotam, a Hong Kong-based company, produces sulfonylurea herbicide-tolerant rapeseed to meet the demand for high-quality, non-transgenic rapeseed oil. Similarly, in May 2019, The Butterworks, a company based in the United Kingdom, began selling spreadable butter made with extra virgin cold pressed rapeseed oil. The product gained popularity due to its cholesterol-lowering and immune-boosting properties.

Procurement Resource provides latest prices of Rapeseed Oil. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.