Rapeseed Futures Surge to 6-Week High – Euro Weakness and Soy Rally Provide Lift
🌾 Rapeseed Futures Surge to 6-Week High – Euro Weakness and Soy Rally Provide Lift
Rapeseed Futures Surge to 6-Week High – Euro Weakness and Soy Rally Provide LiftRapeseed futures in Paris posted strong gains on Monday, buoyed by weaker euro exchange rates and a sharp rally in soybeans. August contracts reached their highest level since early April.
📊 Market Situation & Price Development
Rapeseed prices at the Euronext ended sharply higher on Monday. The August 2025 contract rose by €9.75 to €481/t, marking the highest settlement since early April. Later contracts also posted near double-digit gains.*Estimated based on comparable spreads and price movement.
Meanwhile, ICE Canola futures showed mixed behaviour:– Nearby contracts declined slightly, while new crop positions gained.
🌍 Key Market Drivers
- Weaker Euro: Currency support helped make EU rapeseed more attractive globally.
- Soybean Rally: Soaring soybean futures on the CBOT fueled bullish sentiment across oilseeds.
- US–China Trade Progress: Negotiations ended in a breakthrough, raising hopes for sustained U.S. oilseed exports.
- ICE Canola Divergence: Nearby contracts under pressure, but new crop months rallied on supply risks and firm soy complex.
- Fundamentals Backed by WASDE: U.S. rapeseed/canola projections are moderately bullish amid rising biodiesel demand.
💼 Trading Strategy & Market Outlook
The sharp upward move reflects a technical breakout supported by fundamentals. With soybeans and soyoil surging, rapeseed follows suit.Strategy:
- Watch for a retest of €485/t resistance on the August contract.
- Traders should monitor soy market momentum and potential profit-taking after the rally.
- Hedging is advisable for producers as prices approach seasonal highs.