With the decline of the rapeseed crop in the EU will increase soybean processing

According to experts of Oil World, due to shortage of supply of rapeseed in the EU is increasing the demand for soybeans. So, in March-June, the volume of soybean processing in the EU increased in comparison with the same period of 2019 at 8%.

it is Expected that in July-August, the volume of soybean will also rise by 10% to 2.9 million tons, reaching at the end of season 2019/20 16.4 million tonnes in comparison from 16.18 million tonnes in the previous season.

the European Union in 2020/21 MG will continue to increase the volume of soybean and increase its 1.7% to 16.7 million tons.

as a Result of the projected increase in soybean production countries of the EU in the new season of 4% to 2.84 million tons and a significant carry-over stocks at the level of 2.09 million tons, imports will be reduced to 16 million tonnes in comparison from 16.23 million tons in 2019/20 Mr.

Low rapeseed crop in the EU at the level of the previous year and a substantial reduction of its production in Ukraine will lead to the shortage of supply of rapeseed in the EU market, since the increase import canola from Canada would be difficult because of the presence of GMOs in it. In addition, Canada will harvest canola at the level of the previous year and against the background of increased purchases by China after a long break from political motives, will not be able to increase supplies to the EU.

the price of rapeseed is growing faster than soy, and Paris MATIF contracts for November and February rose to 383 to 385 €/t, which is slightly worse than January (decoratinga) high 390-393 €/t But thanks to the strengthening of the Euro against the dollar to 1,197 $/€, the dollar price exceeded the January and made 458,5-460,8 $/t

If the price of soybeans in the United States and Brazil will be 370-380 $/t FOB, then the EU will be profitable to import soybeans to obtain cheap and nutritious meal for livestock.

In Ukraine, purchasing prices for rape remain at 425-430 $/t for deliveries to the port in September and October, but further growth is limited by the competition with the canadian Canalou, which will hit the market in September, and is now trading on the stock exchange at 498,2 CAD/t or 380,8 $/t