EU oilseed crushing down in June

Sunflower, rapeseed and soybean crushing in EU and UK mills fell on the month to the lowest recorded total volume in eight months, driven by limited availability of old-crop rapeseed and a delayed start to this year's harvest after a run of poor weather.

Crush levels down

• Rapeseed crushing fell to a 13-month low of 1,380mn t, its lowest since June 2023's 1,355mn t.
• Sunflower crushing fell to a 10-month low at 469mn t, its lowest volume since September 2023's 369mn t.
• Soybean crushing fell to a five-month low at 1,097mn t, its lowest volume since February at 1,053mn t.
• Total crushing fell to an eight-month low of 2,946mn t, its lowest volume since October 2023 at 2,913mn t.
• Poor harvest conditions across Europe reduced 2024-25 yields, supporting rapeseed prices as well as RSO values, albeit to a lesser extent.
• After months of prolonged cold, Ukraine and southern Russia experienced very hot and dry weather in June, and heavy rains struck parts of western Europe, including Germany and France. Intense heat also struck parts of the US east coast, while the Midwest and Brazil experienced flooding that submerged soybean crops.

High July prices

• Low crush levels in June have, in recent sessions, pushed up vegetable oil prices to multi-month highs, squeezing biodiesel production margins.
• The spot six ports sunflower oil (SFO) price was last assessed at a one-year high at €1,081.50/t on 17 July.
• The spot fob Dutch mill rapeseed oil (RSO) value reached a nine-month high at €1,031.50/t on 8 July, as a result of limited availability of old-crop rapeseed to process and lower forecasts for new crop in main producing countries.
• The Chicago-listed Cbot soybean oil month 1 and 2 price — currently, July and August — reached a four-month high on 5 July.
• High prices have squeezed crush margins along the curve, prompting European oil mill operators to move to the sidelines in recent sessions, holding back on any fresh RSO sales, and some have even begun washing out old contracts in Europe due to poor esterification margins, linked to a drop in biodiesel prices.
• Continental biodiesel demand has been weak generally, although this is more linked to a weaker diesel complex amid a broader economic slowdown and a further shift towards gasoline and electric vehicles. Front-month prices for Ice gasoil, a diesel futures contract, hit the lowest since June 2023 at the beginning of June. Diesel demand is not only down year on year but is considerably lower compared with pre-Covid 19 levels in some of Europe's largest economies.

By Madeleine Jenkins