'Abnormal' EU biodiesel imports hit rapeseed market -FEDIOL
25.05.2023 (Nasdaq) - PARIS, May 25 (Reuters) - An "abnormal" rise in imports of biodiesel classified as waste-based has hit rapeseed prices in Europe, vegetable oil industry group FEDIOL said, calling for an investigation into the authenticity of these biofuel imports.
Rapeseed is the European Union's main oilseed crop and rapeseed oil produced from crushing the crop is widely used in making biodiesel fuel.
The EU has also encouraged the production of biodiesel made with waste oils and fat as part of targets for renewable energy use.
"The magnitude of biodiesel imports' growth is such that it raises questions as to the authenticity of their classification as originating from waste streams," FEDIOL said in a statement on Thursday.
EU rapeseed oil prices have fallen by over 30% in the past five months, leading to a similar-sized fall in rapeseed prices, the group said.
"These trends cannot be explained by other market developments and are a signal that there is abnormal market behaviour," it said.
FEDIOL could not immediately provide more details on EU biodiesel imports.
Traders have cited talk of biodiesel imports as a factor in the sharp drop in rapeseed markets COMc1, though they have also stressed large rapeseed supplies in Europe and biofuel policy changes as pressuring prices after record highs last year following Russia's invasion of Ukraine.
EU imports of vegetable oils, meanwhile, are down sharply this season, partly due to a shift away from using palm oil in biodiesel due to deforestation concerns.
(Reporting by Gus Trompiz; Editing by Sharon Singleton)