Rapeseed crush margins have come under pressure in the European Union as a result of declining EU rape oil prices, ongoing competition from lower-priced oil from third countries and the recent appreciation in rapeseed prices.
A key factor during July/Sept 2006 will be the higher share of soya oil and palm oil used as a feedstock for biodiesel production at the expense of rape oil. This will reduce EU rape oil demand, keep EU rape oil stocks very high and is likely to be bearish for rape oil prices as well as rapeseed crush margins.
Source
Oil World July 07, 2006.
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