Prices for rapeseed and canola are lowered under the pressure of falling demand and increasing supply Outlook

In its October report, the experts of Oil World increased compared to the September forecast the global rape harvest in 2020/21 MG by 0.9 million tonnes to 63 million tonnes, 1.4 million tonnes higher than the figure recorded 2019/20 Mr.

in Particular, the forecast of rapeseed crop in the EU increased by 0.2 million tonnes to 17 million tonnes, 0.2 million tonnes inferior to last year's harvest. For Poland increased the crop forecast to 2.67 million tons, Czech Republic – 1.25 million tonnes, but France was reduced to 3.26 million tonnes due to reduced yields by 8% to 2.92 t/ha.

For Canada, where the canola harvest in mid-October was almost completed, the forecast production has increased from 19.7 to 19.85 million tons compared to 19.6 million tonnes in 2019/20 Mr.

in addition,Australia in comparison with last year will increase the production of canola from 2.33 to 3.54 million tonnes, due to Ohm, its exports will grow by 1 million t to 2.5 million t

After last week the price of rapeseed on the MATIF in Paris has reached the annual maximum 395 €/t since the beginning of the week they fell by 7 €/t under pressure from falling oil prices and growing concerns about a possible reduction in the demand for biodiesel through quarantine in the EU.

a Sharp increase in the prices of soybeans and sunflower in Ukraine has not affected the prices of rapeseed, which remained in the port-level 425-430 $/t or 13800-14000 UAH/t as the traders procurement programs, the prices continue to fall, despite the reduced harvest.

Although due to favorable weather, growth of canola production in Canada, the prices last week reached 6-year high – CAD 550/t or 417 $/ton, now dropped to 543,1 CAD/t Prices supported by strong demand from the EU and other countries.

Sowing of winter rapeseed for the harvest-2021 detained the dry weather of August and September in France, Romania, Bulgaria and Ukraine, however, the reduction of harvest will be compensated by increase in sowing areas in Germany, Poland, Denmark and the Baltic States, where the weather was favorable.

Data on sowing for the harvest in 2021, an increase in supply from Australia and forecasts of reduced demand for biodiesel in the EU in the near future will continue to put pressure on the price of rapeseed.