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Rapeseed Regains Momentum โ€“ Biofuel Hopes and Strong Veg Oils Drive Prices Higher

Rapeseed Regains Momentum โ€“ Biofuel Hopes and Strong Veg Oils Drive Prices Higher

๐Ÿ“ˆ Rapeseed Regains Momentum โ€“ Biofuel Hopes and Strong Veg Oils Drive Prices Higher

๐Ÿ“ After a brief pullback on Monday, rapeseed rebounded sharply on Tuesday. Driven by rising soybean oil prices and renewed biofuel optimism in the U.S., the Euronext May contract climbed above โ‚ฌ525/t, while canola in Canada rallied by over 2%. Traders remain focused on biofuel policy shifts and upcoming tariff decisions.




๐Ÿ“Š 1. Market Overview โ€“ Futures & Trends

๐ŸŒ CBoT โ€“ Soybeans & Products

๐Ÿ“ˆ Euronext โ€“ Rapeseed Futures

๐Ÿ“ˆ ICE Winnipeg โ€“ Canola Futures




๐ŸŒ 2. Market Drivers & Key Insights

๐Ÿ“Œ Rapeseed Strengthens on Oil Market Rally

  • The 5% surge in soybean oil prices sparked broad buying across the oilseed complex.
  • Euronext May rapeseed reached a 3-week high, benefiting from tight old crop supply and technical momentum.

๐Ÿ›ข๏ธ U.S. Biofuel Talks Fuel Speculation

  • Agriculture and oil industry groups are reportedly negotiating an increase in the U.S. biodiesel mandate from 3.35 to up to 5.75 billion gallons.
  • Such a policy shift, expected to be endorsed by the Trump administration, could boost domestic demand for vegetable oils.

๐Ÿ“ˆ Canola Follows, Eyes U.S. Trade Outcome

  • ICE canola posted strong gains, led by old crop strength.
  • Traders are closely watching for further guidance from Washington regarding tariffs on Canadian oilseed products.

๐ŸŒด Palm Oil Resumes Rally

  • Malaysian futures gained over 2% following Ramadan holiday closures.
  • March exports are estimated at 1.05 MMT, only slightly above February, but supportive for short-term sentiment.





๐Ÿ”ฎ 3. 3-Day Price Forecast

๐Ÿ“ˆ Rapeseed (Euronext)

  • Trend: Bullish, with continued oilseed support and speculative interest.
  • Resistance: โ‚ฌ535/t
  • Support: โ‚ฌ510/t
  • Expected Range: โ‚ฌ515 โ€“ โ‚ฌ530/t

๐Ÿ“ˆ Soybeans (CBoT)

  • Trend: Stable with upside potential if biofuel policies evolve.
  • Resistance: 1,045 ct/bu
  • Support: 1,015 ct/bu
  • Expected Range: 1,020 โ€“ 1,040 ct/bu





๐Ÿ“‰ 4. USDA Ending Stocks โ€“ Soybeans (Outlook)






๐Ÿ” 5. Summary & Outlook

๐Ÿ“ˆ Key Takeaways:
  • Rapeseed snapped back strongly after Monday's pause, buoyed by soybean oil and canola strength.
  • Biofuel policy rumours provided a fresh narrative for buyers.
  • Soybeans also advanced, though questions around U.S. trade and processing capacity remain.
๐Ÿ”ฎ The next catalysts will likely come from Trumpโ€™s tariff plans and finalized U.S. biofuel legislation โ€“ both with direct impact on global vegetable oil markets.
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