Reduction in sowing areas of winter rape in Ukraine and the EU contributes to higher prices
Quotes on rapeseed MATIF in Paris this week has renewed a multi-year high amid rising world prices for soybeans and projections of reduced production in Ukraine and the EU in the next season due to the reduction in sowing areas of winter rape.
According to the Agency of MARS, due to drought conditions was disrupted the sowing campaign in Romania, France, Bulgaria, great Britain and Ukraine, therefore, there sown areas of winter rape decreased compared to last year and average 5-year average.
heavy rains in September were held in Germany and France, which allowed doceat late varieties at the last valid time. In Germany, the acreage will exceed last year's level, whereas in the UK and France will be reduced, as excessive rains have delayed sowing.
In Ukraine the sowing areas of winter rape decreased compared to the previous year by 30% to 875 thousand hectares (or 87% of plan) due to prolonged drought in August-September, especially in southern regions where rainfall was not more than 5 months. The export program is almost complete, so traders do not buy canola, and the price for it in the port remain at 425-435 $/t
With the beginning of the month February rapeseed futures on the Paris MATIF rose by 8.4% and on Monday reached 415,25 €/t or 493,2 $/t, while on Tuesday declined by 3,75 €/t to 411,75 €/t, but the dollar price fell only by 3 $/t to 490,2 $/t due to the strengthening of the Euro to 1.19 $/€. May futures remain at a low level 407 €/t
Reduction of export of rapeseed from Ukraine, the European Union replaces the supply of canola from Canada. This season, the EU imported of 2.61 million tonnes of rapeseed, compared with 3.21 million tonnes in the same period last year.
in Canada the new season has increased compared to previous canola exports by 34% to 3.7 million tons despite strong sales early in the season total exports, according to estimates of the USDA, may be 4% less than last year, to reach 9.8 million tonnes, which is 5% below the average 5-year rate due to increased competition from Australia.
Yesterday, prices for canola in Canada rose to 7-year high 584,6 CAD/t or 449 $/t on the background of increased demand and growth in neighboring markets of soybeans and oil.
In Australia, where the harvest rapeseed production due to the favorable conditions to grow compared to the previous year by 43% to 3.3 million tonnes, and exports by 505 to 2.7 million tons.
High price of soybeans and vegetable oil on the background of the increase in oil prices supported the quotations of canola oil at a high level, which raises the price of rapeseed to record levels.
