Rapeseed Prices Soar as European River Disruptions Bite

Abnormal heat and dryness in Europe have led to a sharp decline in water levels on major rivers, including the Rhine, Danube, Po, and Loire. This has caused disruptions in cargo transport, with barges carrying only 20-30% of their usual load, resulting in increased freight costs and delayed deliveries.

Rapeseed prices have been affected by these supply chain issues, with November futures on the Euronext Paris exchange rising 3.9% to €533.25/t or $617/t over the week. This increase is partly due to rising oil prices.

Domestic suppliers in Europe are selling more rapeseed than usual, leading to a decrease in prices last week. However, European processors are now increasing their demand for rapeseed from domestic sources, driving up prices once again.