Euronext Rapeseed Prices Plummet Amid Ukraine's Surging Supply

Rapeseed futures on the Euronext Paris exchange plummeted by 5.5% to €515.75/t in August, completely erasing gains from the last two weeks. This decline is largely due to active sales of August contracts, which expire at the end of July.

Traders and funds that don't plan to make physical deliveries are liquidating their long positions and switching to November contracts. The latter fell by only 2.2% to €550.75/t or $628/t (+4.3% in two weeks) under pressure from falling oil prices and increasing physical supply of the new crop.

Ukrainian farmers have significantly increased rapeseed supplies for delivery to the EU in August and September, leading to a decrease in prices on the physical market from 545-555 to 525-535 €/t for delivery to EU factories in September.