The increase in forecast production in Australia and Canada lowers the price of rapeseed

Weather conditions favorable to the development of canola in Australia canola in Canada, lower European prices for oilseed rape, despite the decline in forecast production in the EU and Ukraine.

Since the beginning of the week the price of rapeseed on the MATIF fell by 4.5 €/t to 379,5 €/t or 449 $/t under pressure from the increasing offers from manufacturers.

Experts Strategie Grains reduced in comparison with the previous report, the forecast of rapeseed production in the EU including the UK 1.9% to 16.54 million tons, whereas in 2019, it amounted to 17.12 million tonnes, and in 2018 – 20.1 million tons.

For Ukraine, the crop forecast decreased from 2.8-3 to 2.4-2.5 million tons, while last year it amounted to 3.3 million tons.

the price of rapeseed in Ukraine has reached level 428-430 $/t or 14100-14200 UAH/t, but this week began to sink under the pressure of increasing sentences. In addition, some traders stopped buying canola for failing to form export consignments because of the low oil content in seeds.

According to estimates by the canadian Agency FarmLink Marketing Solutions, this year the country will gather 20.2 million tons of canola compared to 18.6 million tonnes in 2019 Due to favorable weather conditions and farmers expect record wheat crop.

a Significant portion of the crops of canola, peas and lentils are behind normal development because of the shortage of heat in July, therefore, needs favourable conditions to the end of the summer. Statistics Canada plans to publish first official estimates of production of crops on August 31.

the Experts at the USDA in the July report reduced due to excessive precipitation and low temperatures in early summer to assess the production of canola in Canada in 2020/21 MG from 19.9 to 19 million tons.