The decrease in the forecast of consumption of biodiesel lowers the price of rapeseed

2020-04-06 12:05:13
Machine translation
The decrease in the forecast of consumption of biodiesel lowers the price of rapeseed

Experts Oil World has lowered the forecast of world production of biodiesel in 2020 by 3.9 million tonnes to 43.5 million tonnes, but it is not excluded to further reduce production in case of continuation of the developed countries of quarantines through Covid -19.

 

Reduction in demand for automobile fuel reduces the consumption of ethanol and biodiesel that lowers the price of corn, sugar cane, rapeseed and palm oil.

 

the Main consumer of Ukrainian rapeseed is the European biodiesel industry, which receives from the EU budget subsidy, allows you to maintain the premium prices for rapeseed at the level of soybean and sunflower.

 

In 2019/20 Mr EU has reduced rapeseed production to the lowest in 13 years of 16.89 million tons, bringing import of rapeseed rose to a record for this period is 4.9 million tons, the Main suppliers of rapeseed in the EU in the current season are Ukraine and Canada, whose share in the total imports as of March 29 was 58% and 29% respectively. At the same time, due to the effects of drought reduced production, the share of Australia's imports of rapeseed in the EU decreased to 9%, which is the lowest indicator for the last 10 years.

 

Experts Strategie Grains in the March report have reduced compared to the January forecast evaluation of rapeseed production in the EU this season, from 18.05 to 17.59 million tons.

 

In Ukraine, rapeseed production will decrease to 2-2. 2 million tons compared to 3.3 million tonnes in the previous season due to the shortage of moisture during planting. But the reduction of production in the EU and Ukraine compensate for its increase in Canada and Australia.

 

Reduction in demand for biodiesel lowers prices for rapeseed oil, which has fallen by 15% to 670 €/t for deliveries in June-July. The price of canola a month ago it was down to 341 €/t, but now has grown to 366,5 €/t for August supplies to support growth in oil prices. But even the increase in oil prices will not support the price of rapeseed with the reduced physical demand for automotive fuel will reduce the demand for biodiesel in the next few months in the future apostatise the price of rapeseed.

 

Experts Oil World has decreased compared to the previous estimate, the forecast of biofuel production in the EU 1.3 million tonnes to 13.2 million tonnes, 1.6 million tonnes will yield to the level of 2019 For the U.S. production forecast was reduced 0.6 million tons to 7.4 million tons, which will still exceed last year's of 7.35 million tons.

 

at the same time Indonesia in 2020 will increase production of biodiesel in comparison with the previous year from 7.48 to 8.2 million tons, Brazil – from 5.16 to 5.4 million tons, while Argentina will decrease from 2.15 to 1.9 mln t and Malaysia – C1,2 to 0.8 million tons.

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