Canada, the EU and Ukraine will increase rapeseed production
Despite of spring frosts and rains, crop condition of rapeseed in the EU, gives hope for the harvest at the level of multi-year performance - reported the experts of Strategie Grains.
Analysts Oil World (Germany) estimated ending stocks of rapeseed in the EU in 2017/18 MG 2.32 million tons, 0.9 million tons higher than the figure recorded the previous season. Growth stocks due to increased production and imports of oilseeds by a decline in processing volumes, reduced the third season in a row and 2017/18 MG will be 24,01 million tonnes against 25,35 million tons in 2014/15. The excess supply of rape can lead to a reduction in imports.
Traders expect Friday's report to the canadian Bureau of statistics will increase compared to the previous year estimation of acreage under Canalou 3-6% to 23.6-24.3 million acres. Cold weather has delayed the beginning of sowing, but next week the pace of planting accelerated with the warm and dry weather conditions.
In Ukraine, winter rapeseed planted 1 million hectares of which 89% of crops are in good condition, so we can expect a harvest of 2.5-2.7 million tons against 2.1 million tons in 2017.
production Increase will be offset by increased imports of rapeseed in China, which for a trade war with the United States reduces imports of soybeans.
On Euronext August rapeseed futures fell to 341,5 €/t or 413,85 $/t, whereas canola in Chicago has risen to 535 CADa/t or 416,27 $/t in Ukraine In rapeseed for delivery in August, traders offer 406-410 $/t, but manufacturers are in no hurry contractualise, waiting for rising prices to the level of prices for soybeans 420-430 $/t