Rapeseed On The Rise
EU rapeseed prices rose EUR3-4/tonne yesterday and are already up a similar amount this morning in Paris as EU and global production estimates shrink.
Lower production than last season's bumper crop is being forecast in the EU's top two producers France and Germany, whilst heavy flooding is also a cause for concern in Europe's third largest grower - Poland.
Whilst the return to wet and cool conditions has helped EU wheat, it is being seen as detrimental to rapeseed development.
Oil World currently forecast EU-27 output at 20.8 MMT, and note too that production in Ukraine, a key supplier in recent years, is also seen sharply lower for the second consecutive year.
The jury is out on the size of the Chinese crop this year, normally the world's largest producer with estimates ranging from "under 10 MMT" to an official 12.6 MMT, even the latter is a reduction of 7.6% whilst the former would represent a fall in excess of 25% on last year.
Meanwhile over in Canada spring rapeseed planting is struggling to get into the ground and establish in heavy saturated soils. Plantings will probably end up considerably smaller than original expectations of a record acreage, as adverse weather conditions, particularly in Saskatchewan look set to leave large areas unseeded. Growers here have just ten days left before the deadline for crop insurance kicks in.
Lower production than last season's bumper crop is being forecast in the EU's top two producers France and Germany, whilst heavy flooding is also a cause for concern in Europe's third largest grower - Poland.
Whilst the return to wet and cool conditions has helped EU wheat, it is being seen as detrimental to rapeseed development.
Oil World currently forecast EU-27 output at 20.8 MMT, and note too that production in Ukraine, a key supplier in recent years, is also seen sharply lower for the second consecutive year.
The jury is out on the size of the Chinese crop this year, normally the world's largest producer with estimates ranging from "under 10 MMT" to an official 12.6 MMT, even the latter is a reduction of 7.6% whilst the former would represent a fall in excess of 25% on last year.
Meanwhile over in Canada spring rapeseed planting is struggling to get into the ground and establish in heavy saturated soils. Plantings will probably end up considerably smaller than original expectations of a record acreage, as adverse weather conditions, particularly in Saskatchewan look set to leave large areas unseeded. Growers here have just ten days left before the deadline for crop insurance kicks in.
