In 2019, the EU will reduce consumption of rapeseed oil in biodiesel by 4%

On QAby the Incas USDA in 2019 in the EU production of biodiesel will be reduced by 2%, while consumption will grow by 3% to of 17.38 billion liters, compared to 16,854 billion litres in 2018. Consumption growth due to increase in the mandate to use 10% biodiesel fuel for the EU countries.

the Reduction in production caused by the current decline in the use of rapeseed oil in its production by 4% to 5 million tons as a result of increased competition from cheaper raw materials and ban on the use of insecticides, which reduces the yield of rapeseed. The reduction of the yield of rapeseed in the EU further encourages biodiesel producers to use other raw materials.

In comparison with last year the consumption of crude palm oil in the production of biodiesel will increase by 3% to 2.64 million tonnes, While consumption of soybean oil, according to the forecast of the USDA, will increase from 1 to 1.1 million tons.

the decrease in the output growth in the consumption of biodiesel in the EU will lead to a significant reduction in inventories and exports, although production capacity in Europe will grow.

the Increasing use of palm and soy oil in biodiesel reduces the demand for canola, so the import will not grow despite the decline in harvest in the EU due to drought. In July USDA estimated imports of rapeseed in the EU at 4.7 million tonnes (in June was 4.8 million tons), while other analysts predict it in the range of 5.4-5.8 million t

Thanks to the low prices of soybeans in the United States in 2018/19 MG EU increased its imports of soybeans by 8% to 14.9 million tonnes and reduced the import of rapeseed by 2% to 4.2 million tons.

On the back of lower forecasts rapeseed production in the EU, Ukraine and Australia, prices in Paris for two weeks increased from 363 to 372 €/t 419 or $/t