Prices for oilseed rape growing because of lower crop forecasts in the EU

Strategie Grains Experts predict that next year the production of rapeseed in the EU will grow to 18.46 million tonnes in comparison with 13-year low this year – loss of 16.85 million tons.

the harvest Forecast for 2020 is still one of the lowest in recent years after planting, when Western Europe suffered greatly from the drought. It corresponds to the original Strategie Grains forecast for November, where the rapeseed crop was estimated lower than 19 million tons.

it is Expected that the sowing area compared to last year will rise from 5.53 to 5.68 million hectares and the yield from 3.05 to 3.25 t/ha.

February rapeseed quotes on Euronext yesterday rose to 1.75 €/t up to the high season level 398,75 €/t or 441,4 $/ton, and futures for August 2020 2 €/t to 379,75 €/t or 420,4 $/t

Ukraine's rapeseed crop may be reduced due to the autumn drought, which forced farmers to increase sowing area, so in comparison with the previous year, they decreased from 1.3 to 1.09 million hectares In 2019, the country has collected 3.3 million tonnes of rapeseed, of which it exported 2.8 million tons In the following year's crop may reach 2.5-2.6 million tons and exports 2 million tons.

Cancelled from 1 January 2020, a VAT refund when exporting canola intermediaries will reduce the purchase of canola by traders for the hryvnia and leave only for the currency that will put pressure on purchase prices in the new season and will reduce the profitability of rapeseed production, which was lower than last year due to the decline in currency prices and the strengthening of the hryvnia.