Rapeseed oil prices fell again on Friday in Europe's vegetable oils market after selling by the biofuels fuels industry following a European Union decision to allow imports of soyaoil-based Argentine biodiesel. "It looks like Europe will be importing significant volumes of Argentine biodiesel in a matter of weeks and this will reduce the need for rapeseed oil used as a raw material for European biodiesel production," one European trader said.
"There was repeated selling again today of rapeseed oil by both European biodiesel producers and oil companies." Rapeseed oil for November 2017 and January 2018 traded at 12 euros to 14 euros a tonne below Thursday's levels. Rapeseed also traded in a series of delivery positions up to October 2018 as biodiesel producers disposed of their supplies, traders said.
Prices for Dutch and German-produced rapeseed oil ended the day 6 euros to 10 euros a tonne lower for delivery positions from September 2017 and April 2018. Argentina will regain access to the European Union's biodiesel market within three weeks after its successful World Trade Organization challenge to Europe's anti-dumping duties on the fuel, the EU said on Thursday.
The EU will lower sharply the tariffs it has imposed on Argentine biodiesel for the past four years by September 28. Europe produces about 10 million tonnes of biodiesel annually and it is expected that about 1.5 million tonnes will be replaced by imports of cheap soyaoil-based Argentine biodiesel, the association of German biofuels producers said.
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