🌾 Rapeseed Retreats After Rally – Profit-Taking Caps Gains

Rapeseed Retreats After Rally – Profit-Taking Caps Gains

After two days of strong gains, rapeseed futures slipped slightly on Wednesday as farmers locked in higher prices. Increased hedge selling led to the highest August turnover in two weeks.

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📊 Market Situation & Price Development

At the Euronext, rapeseed futures gave back part of their recent rally. The August 2025 contract fell by €5.50 to €484.00/t, with commercial hedging pressuring the market after sharp gains earlier this week.

*Estimates based on spread behaviour.

Meanwhile, ICE Canola showed mixed movement:

• Nearby months corrected slightly
• Deferred contracts (from Nov 25 onward) stabilised or firmed marginally

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🌍 Key Market Drivers

• Vegetable Oil Prices StabiliseSoyoil and palm oil gained early in the session, offering short-term support. However, Thursday morning saw renewed weakness.
• Heavy Hedge SellingHigh physical prices prompted increased farmer sales, which were hedged on Euronext, leading to a surge in traded volume.
• Soybean Market Still StrongOngoing support from U.S. biofuel policy and trade talks underpins the oilseed complex, keeping downside limited.
• Crude Oil Correction Spills OverWeaker energy prices weighed slightly on sentiment in late trade.

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💼 Trading Strategy & Market Outlook

The break in momentum is not necessarily bearish – it's a technical pause following a breakout. The market remains firm above €480/t.

Strategy:– Long positions can be held above €482/t support– Monitor further farmer selling and oil market signals– Watch for a possible rebound on Thursday if external oils recover

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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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