🌾 Rapeseed Extends Rally – Market Climbs to Highest Since March

Rapeseed Extends Rally – Market Climbs to Highest Since March

Rapeseed futures continued their upward momentum on Tuesday, supported by soaring vegetable oil markets and tight global stocks. The August contract reached its highest price in nearly two months.

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📊 Market Situation & Price Development

Rapeseed futures at the Euronext (MATIF) recorded another strong session on Tuesday. The August 2025 contract rose by €8.50 to €489.50/t, marking the highest closing price since March 2025.

All forward contracts posted similar gains, supported by firm spot market prices and rising plant oil values globally.

*Estimated based on inter-month spread behaviour.

Meanwhile, ICE Canola contracts surged by over 2.6%, led by the July contract, which climbed CAD 18.70 to 729.30. Tight Canadian inventories and undervaluation relative to other vegetable oils spurred buying.

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🌍 Key Market Drivers

• Strong Vegetable Oil ComplexSoyoil and palm oil rallied, lifting sentiment across oilseeds.– Soyoil rose sharply on clean fuel tax credit extension proposals in the U.S.– Palm oil advanced on low Ringgit and bullish spreads.
• Political Support in the U.S.U.S. lawmakers proposed extending the 45Z biofuel tax credit to 2031, which is expected to lift domestic soyoil demand.
• U.S.–China Trade ThawFollowing a temporary tariff rollback, President Trump hinted at direct talks with China’s Xi Jinping, creating a 90-day window for a deal.
• Canadian Canola SurgeICE contracts rose across all maturities, led by strong commercial interest and firming domestic crush margins.
• Spot Market StrengthGerman physical rapeseed prices (franco oil mill) were reported between €478 and €486/t, supporting futures.

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💼 Trading Strategy & Market Outlook

The technical breakout continues with volume confirmation. A close above €490 on the August contract could open room toward €495–500.

Strategy:– Momentum traders may hold positions with trailing stops.– Producers can look to secure pre-harvest premiums near multi-month highs.– Watch for external oilseed corrections.

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📈 3-Day Price Forecast (Aug 25 Contract)

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🌦️ 14-Day Weather Outlook – Rapeseed Regions

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