The price of rapeseed strengthened despite a decline in prices for oilseeds

the European rapeseed Market continues under pressure of falling world prices of soybeans on one side and the lower rapeseed crop in the EU to a minimum over the past 13 years on the other side. There are also fears about the forthcoming sowing campaign for harvest 2020 in connection with water deficit and high temperatures, which are observed in France, Germany and Ukraine.

Quotes rape on the stock exchange Euronext in Paris on Friday fell by 3/t, but on Monday recovered to the level of 378,5 Have a/t or 420,2$/t rising prices for rapeseed oil in the EU also provides powerful support prices for rapeseed in Europe.

the Purchase prices for Ukrainian rapeseed will remain at the level of 400$/t, or 12050-12100грн/t delivery port and an increase in sales as farmers increasingly selling canola in the background of low prices for other crops.

Another factor of pressure on prices of European and Ukrainian rapeseed is the low prices of canadian canola, which has remained unclaimed from China after the deterioration of trade and political relations between the two countries since the beginning of the year.

Quotes for canola remain on the level 448,5 CAD/ton, but the depreciation of the canadian dollar led to lower canola prices in us dollars up to 338 USD/t, which is very attractive for European recyclers.

Canadian sales of canola to the EU are on the rise for several years. According to the latest Canadian grain Commission, Canada exported 527 000 tonnes of canola in Western Europe from July 2018 to June 2019, and according to forecasts this season exports to the EU can be up to 1.2 million tons.

But the active export canola to the EU constrains two factors the presence of GMOs and the fact that only one group of companies G3, (owned by Cargill, Viterra and Saudi Arabia), to supply certified canola to the European biodiesel.

Sales of rapeseed in the EU for biodiesel production require that consignors and farms, where they buy, consistent with the sustainability standards under the EU Directive on renewable energy.

StatsCan this week will release an updated forecast of production of canola in Canada, and according to the forecast of experts, the production will be reduced in comparison with the previous year to 18.9 million tons compared to 20,34 million tons last year.