EU RSO exports up in April on firm global demand

Rapeseed oil (RSO) exports from EU countries continued to accelerate in April, supported by strong international demand and firmer prices for substitute vegetable oils.

Around 50,000t of rapeseed oil was exported from the EU-27 countries during 29 March–5 May, up by 33pc from 37,000t a year earlier. Overall shipments since the 2020/21 marketing year began in July now amount to 469,000t, compared with just 168,000t last year.

The fast export pace follows strong international demand amid tight feedstock oilseed supply and high premiums for substitute palm oil and soybean oil (SBO) to RSO.

The Chicago-listed SBO front-month contract surpassed Argus' prompt fob Dutch mill RSO price by $53/t for the first time on record on 26 April, having averaged around $1,473/t. The contract closed at $1,520/t on 28 April, its highest for at least 10 years.

China and Norway have been the largest buyers of EU RSO this marketing year, importing 195,000t and 179,000t of the product, respectively.

Norway's demand has come largely from the industrial sector, while China's demand has been supported by a recovering animal-feed sector, with local producers seeking to raise fat content in animal feed following an increase of wheat portions in rations.

Meanwhile, EU imports of feedstock rapeseed so far this marketing year have reached about 5.43mn t, up by 200,000t year on year, reflecting stronger demand for end product RSO exports. Ukraine and Canada have supplied 2.19mn t and 1.88mn t of the oilseed, respectively.

By Andrew Kanyemba