Canada and Ukraine will compete for the European market of rapeseed

In the 2018/19 season, the EU has reduced rapeseed production to 19.6 million tonnes compared to the average 5-year rate of 22.1 million tons of imports of rapeseed increased by only 6% to 2.7 million tonnes thanks to extensive import of cheap U.S. soybeans.

According to the European Commission, as of February 17, the EU imported 9 million tons of soybeans, which is 10% higher than the corresponding figure of the previous MG.

the Main suppliers of rapeseed to the EU were Ukraine (1.8 million t), Canada (600 thousand tons) and Australia.

reduction in the production of canola in Australia to 2.3 million tonnes, against 3.6 million tonnes on average over 5 years will reduce the country's export potential, which will allow Canada to increase the supply of rapeseed in the EU in the second half of the season.

According to the experts Viterra, the EU plans to increase its purchase of canadian canola with 600 thousand tons on average over the 5 years up to 800 thousand tons in 2018/19 season and will intensify even more import in 2019/20 MG, as European farmers have reduced the acreage under rapeseed in favor of wheat, and of crops from frost damage.

Viterra estimate of the rapeseed crop in the EU at the level of 18 mln tonnes, which corresponds to a predictable Agency Oil World of 18.7 million tons and will be the lowest figure for the last 10 years.

Normally, farmers in the EU harvest of rapeseed in July, and the processors working on it until October, then transferred on imported raw materials. European plants annually process 20 million tonnes of rapeseed, of which 3 million tonnes is imported. Almost 60% of the oil goes to biodiesel production.

planted winter canola 1.3 million hectares of Ukraine will be able to collect 2.8 to 3 million tonnes compared with 2.6 million tonnes in 2018, which will allow to increase exports to 2.6-2.7 million tonnes against 2.3 million tonnes in the current season.

Prices for rapeseed of the new harvest in the Ukrainian ports remain the same as last year and make 400-410 $/t, whereas on Euronext declined to 360 €/t or 408,2 $/t