Rapeseed hits six-week high, lifted by buoyant vegoils
• Paris rapeseed heads for first close of 2026 above its 100-day moving average
• Buoyed by resilience in crude oil, and demand boosts to vegetable oil prices
• Wheat prices lose early headway as weather maps boost southern US Plains rainfall hopes
Rapeseed prices shifted higher, helped by firmness in crude oil and vegetable oil, and outperforming sluggish wheat markets, weighed by forecasts of rain for the US Plains.
Rapeseed futures for May-26 added 1.3% in late deals in Paris, on target for their first close in six weeks above their 100-day moving average.
Buoyancy in Canadian canola, continuing to be bought following China’s ditching of punitive import tariffs, was one factor offering support. The Winnipeg May-26 contract traded up 1.3%, back above its own 100-day moving average.
However, signs that crude oil may be stabilising above early-year lows, with Brent crude returning above $65/bbl, also helped values of an oilseed used largely to make biodiesel.
Vegetable oil prices proved notably firm, lifted by demand ideas.
Chicago soyoil futures for March-26 rose by 2.9% in late morning trading, to top US$c54/lb for the first time since August on a spot contract basis. The vegetable oil is gaining ground on hopes for a revised US biodiesel mandate, expected to be finalised by early March.
In Kuala Lumpur, palm oil futures gained 1.5% on Wednesday, and a further 1.1% in early deals in Thursday’s session, amid ideas of consumption improvements spurred by lunar new year celebrations in China and elsewhere. Lunar new year in 2026 falls on 17 February, which will usher in China’s year of the horse.
Also among oilseeds, Chicago soybeans for March-26 added 1.1%, supported by soyoil, and hopes for further Chinese buying of US exports.
However, early bargain hunting in wheat markets fizzled out as weather maps showed rains for the southern US Plains, where dryness has raised concerns for winter crops.
As of last week, 63% of Texas was officially rated as being in drought, and 71% of Oklahoma.
Futures in hard red winter wheat, as grown in the southern Plains, attracted particular pressure, trading 0.8% lower for March-26 delivery in late morning deals. Benchmark Chicago soft red winter wheat for March-26 shed 0.5%.
In Paris, March-26 milling wheat futures traded unchanged, while London feed wheat for May-26 shed 0.3%, weighed by firmness in sterling.
