An increase in the area of canola sowing in Canada has stopped the growth of rapeseed prices

< span style="font-size:14px;" > according to the Canadian Bureau of Statistics, due to record high prices and active export and domestic demand, canola sowing areas in the country in 2021 will increase by 3.6%, and production will exceed 20 million tons, which will be the highest figure in the last 3 years.

< span style="font-size:14px;">producers are expected to increase the area under canola to 21.6 million acres or 8.7 million hectares, under soybeans – by 5.5% to 5.3 million acres, while wheat sowing areas will be reduced by 6.9%. However, cold and dry weather can still change both the structure of sowing areas and production estimates in 2021.

may canola futures, which recently reached a record 901 CAD/t or 7 726/T, fell to 900.5 CAD/t after the forecast was released, and November futures from 693 CAD/t or 5 558.4/T fell by 2.26% to 678.2 CAD/t, increasing in price since the beginning of April 15%.

< span style="font-size:14px;">EU countries imported 5.37 million tons of rapeseed this season, in particular: from Ukraine – 2.2 million tons, Australia – 1.08 million tons, canola from Canada – 1.88 million tons. Canada significantly increased the volume of supplies, although experts expected increased imports from Australia.

< span style="font-size:14px;" > the European Crop Monitoring Agency lowered its forecast for rapeseed yield in the EU from 3.26 to 3.19 t/ha compared to the March assessment.

< span style="font-size:14px;">Agritel analysts expect that the area of rapeseed sowing in France will not exceed 900 thousand hectares, and the yield will be lower than the average of the last five years.

< span style="font-size:14px;" > on Paris Euronext, may rapeseed futures were trading at 494 €/t in early April, reached a record 595.25 €/t on April 22, then declined, and yesterday rose again by 6.25 €/t to 592 €/t or 715.1 € /t, adding 13% in price during the month. August futures last week reached 502.5 €/ton and began to fall, yesterday they fell by 5.75 €/ton to 494.5 €/ton or 597.6 € / ton, adding 11.5% in price in two weeks.

< span style="font-size:14px;" >in Ukraine, forward prices for rapeseed have already increased to 6 600 / ton for deliveries to the port in July – August, although some contracts are concluded at 6 610-620 / ton.< / span> < / p>

< span style="font-size:14px;">cold weather slows down the development of winter rapeseed crops in Ukraine, which can reduce its yield, especially given the reduction in sowing areas compared to last year.