Oil Prices Drive Futures Growth

The start of 2025 has seen rapeseed and canola futures rise between 1.5–2.5%, recovering from the declines in late 2024. The rebound was fueled by a combination of rising global oil prices, stronger European gas prices, and a weakening euro against the US dollar.

On the Paris Stock Exchange, February rapeseed futures increased by 2.5%. It is now USD 0,54 per kg (EUR 524,25 per tonne), marking a 1.9% month-on-month gain. This recovery offsets the 4.4% pre-New Year drop, aided by the euro’s 2.9% monthly decline against the dollar, now at USD 1,028 per euro.

Energy Markets Provide Momentum

Energy markets have contributed to the rise in rapeseed and canola prices.

• March Brent crude futures rose by 3.8% to USD 75,90 per barrel in December.
• WTI crude futures gained 4.2% to USD 72,50 per barrel, driven by forecasts of a significant drop in US temperatures.

These developments have created bullish sentiment in oilseed markets, lifting prices globally.

Canadian Canola Gains Support from Exports

January canola futures on the Winnipeg Exchange rose 1.5% to USD 0,43 per kg (CAD 625 per tonne), supported by a surge in Canadian exports. Amazingly, from September 1 to December 22, Canada exported 4,39 million tonnes of canola. Marking an 81% increase compared to the same period last year.

Canada’s canola prices remain stable despite reduced US demand due to falling soybean oil prices, supported by strong export momentum. A weaker euro has narrowed the price gap between Canadian canola and European rapeseed to USD 100 per tonne, boosting competitiveness.

Low global supplies keep rapeseed and canola markets under speculative pressure in the short term. However, South America’s new soybean crop this spring may add price pressure across all oilseed markets.

Conclusion

Rapeseed and canola futures have started 2025 on a strong note, driven by rising energy prices and robust export activity. While the market remains under speculative influence due to tight supply, the new soybean crop in South America will likely play a decisive role in shaping the market trajectory for oilseeds in the months ahead





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