The increase in forecast rapeseed production puts pressure on prices
According to the updated balance of Oil World, world production of rapeseed in 2017/18 MG will increase by 0.9 million tons to 64.2 million tonnes.
the Largest producers will remain the EU and Canada, for which a production forecast is increased from 20.44 to 21.21 million tonnes and from 19.25 to 19.8 million tons, respectively. Before the canola crop in Canada is estimated at 20 million tons, but even of 19.8 million tonnes-a record breaking figure for the country.
For Ukraine, the harvest has increased from 1.3 to 1.9 million tonnes. However, production cuts in India, Australia and China will increase the volume of the world offers only 1% to 70,12 million tons.
World exports of rapeseed in comparison with last season will grow by 1 million t to 15.4 million t. the Decrease in exports from Canada and 0.7 million tonnes and Australia by 0.8 million tonnes will be partially offset by an increase in exports of rapeseed from Ukraine by 0.5 million tons.
the Largest importer of rapeseed are China, which will be able to buy 4.31 million tons of seeds that becomes the greatest volume of imports, starting in 2014/15. However, the record imports of soybeans in China and a decrease in the margin of the local processors can lead to lower imports of rapeseed, which will immediately affect the price.
Following the soybean market thanks to improved weather in Canada prices for canola in Chicago for two days has fallen from 530 to 521 CAD (from 416 to 402 $/t).
rising prices at Euronext within two weeks from 356 to 376 EUR/t yesterday gave way to fall at 1.25 Euro/ton, which will continue after the decline in prices of soybeans and canola in Chicago, and with the progress of the harvest in the EU.
the Delay of the harvest in Ukraine, together with global trends caused a rise in the price of canola at the port with 400-415 $/t or 12400-12600 UAH/ton.