๐ Rapeseed Regains Momentum โ Biofuel Hopes and Strong Veg Oils Drive Prices Higher
๐ 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 โฌ525/t, while canola in Canada rallied by over 2%. Traders remain focused on biofuel policy shifts and upcoming tariff decisions.
๐ 1. Market Overview โ Futures & Trends
๐ CBoT โ Soybeans & Products
๐ Euronext โ Rapeseed Futures
๐ ICE Winnipeg โ Canola Futures
๐ 2. Market Drivers & Key Insights
๐ 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.
๐ข๏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.
๐ 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.
๐ด 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.
๐ฎ 3. 3-Day Price Forecast
๐ Rapeseed (Euronext)
- Trend: Bullish, with continued oilseed support and speculative interest.
- Resistance: โฌ535/t
- Support: โฌ510/t
- Expected Range: โฌ515 โ โฌ530/t
๐ 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
๐ 4. USDA Ending Stocks โ Soybeans (Outlook)
๐ 5. Summary & Outlook
๐
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.
๐ฎ
The next catalysts will likely come from Trumpโs tariff plans and finalized U.S. biofuel legislation โ both with direct impact on global vegetable oil markets.