French rapeseed prices on Monday fell from peaks hit last week as German crushers were covered until the year-end and more supplies than expected came onto the market, traders and analysts said.
Moselle-delivered rapeseed in October was at 226 euros a tonne (buyer), down from 233 euros (nominal) a week ago. Euronext November 2005 futures fell to 225.50 euros a tonne on Monday, down more than eight euros from a contract high of 233.75 euros a week ago.
"The main reason for the price drop is that German crushers are very well covered until Christmas," one trader said. "The market needed to catch its breath a bit after three weeks of rising prices," the trader added.
Bernard Nicol, a biofuel maker and analyst said in his weekly newsletter: "The surprise comes from the seeds market, which is still very well supplied this week, and against our expectations, is weighing on prices."
One trader said he believed more canola imports in Europe than originally thought could be behind the price fall.
"We knew that there was between 40,000 and 60,000 tonnes of canola going to Europe but there could be more," he said.
Last week, Euronext November rapeseed hit its contract high due to a sharp rise in US soybean futures and the lower euro against the dollar.