Prices for rape are falling, despite the decline in production forecasts

Experts Strategie Grains reduced in comparison with the June forecast evaluation of rapeseed production in EU countries in 2019/20 MG 2.3% to 17.4 million tonnes, down 12.8% compared to last year's harvest. Yesterday the European Commission lowered its forecast for production to 18 million tonnes.

Increase compared with last year average yield of canola is 8% to 3.11 t/ha does not compensate for the reduction in acreage under oilseeds by 19.35 to 5.59 million hectares.

late Harvest of oilseeds in the EU will also diminish because of the July heat.

thus, in comparison with the June forecast estimate of soybean production decreased by 0.8% to 2.6 million tonnes, which is 5.3% would yield a harvest in 2018, the Average yield will decrease by 2.8% to 2.78 t/ha, while acreage declined by 2.4% to 940 thousand hectares.

the Forecast of sunflower production increased by 0.5% to 9.63 million tonnes, which is 1.2% over last season. The decrease compared with the previous year yield of 3.9% to 2.23 t/ha will be offset by an increase in cultivated areas by 5.5% to 4.32 million acres.

Thanks to an increased supply of rapeseed from the new harvest and the likely boost exports of canola from Canada August futures on rapeseed on the Matif declined 3.5 €/t to 376,25 €/t or 419,22 $/ton, while November fell by only 0.5 €/t to 378 €/t

the European Commission yesterday issued a 10-year license that authorizes the sale (but not cultivation) in the EU 10 kinds of genetically modified products, including 5 varieties of maize, one soybean, cotton and decorative studs. For one kind of rape and corn, the term license has expired.

French farmers oppose ratification by Parliament of the agreement between the EU and Canada, which allows imports of goods produced in banned in the EU conditions, violating environmental standards of the EU. Two days ago was set on fire the office of representative of the Parliament from the party of Macron LREM Romain Grau, and yesterday robbed a branch office of the party.

In Ukraine on July 29, with 96% of the area harvested 2.9 mln t of rapeseed with a yield of 2.44 t/ha. This confirms that the harvest will not exceed 3.1 million tons despite forecasts of 3.6-3.9 million tons and almost match last year's 2,747 million tons.

the Purchase price of Ukrainian rapeseed in the port remain low 395-396 $/t or 11900-12000 UAH/t, which is below last year's level by 2.5-4%. Farmers holding back sales because of low yields significantly lose profit.