The decline in world rapeseed production will not affect the volume of proposals
In the August report USDA the forecast for global rapeseed production was reduced to 70,477 million tonnes, or 3.17% to give the figure 2018/19 Mr. However, due to the increase in carryover stocks compared to last season from 7.55 to 9,255 million tons level sentences rape is 0.3% higher than last year's level and amount of 95.2 million tonnes and consumption will also increase from 94,95 to 95,25 million tons, resulting in ending stocks will shrink by 6% to 8.7 million tonnes.
In comparison with the previous season, Canada will cut production by 1 million tonnes to 20.1 million tonnes, the EU – 2.06 million tonnes to 18 million tonnes, India – 300 thousand tons to 7.7 million tons, while Ukraine will increase it to 350 thousand tons to 3.2 million tons, Australia to 420 thousand tons to 2.6 million tons, China – 250 thousand tons to 13.1 million tons, Russia – 110 thousand tons to 2.1 million tons.
the price of rapeseed on Euronext remain at the level of 375,5 €/t or 419,6 $/t and do not react to the decline in forecast production in the EU, since the neighboring markets of soybeans and canola also remained under pressure limits purchases from China, which is the main importer of these crops.
Soybeans in Chicago is trading at 327 $/t and canola at 450 CAD/t or of 340.2 $/t
the Decrease in the forecast of world soybean production has not affected the price of oil, because it continues to reduce consumption and imports of soybeans in the new season of ASF. This will greatly reduce the global consumption of soybeans against the background of substantial reserves.
the Purchase price of rapeseed in Ukraine increased by 1-2 $/t to 398-400 $/t or 11850-12000 UAH/t at the port. The prices presses a large amount of suggestions from the producers who sell primarily rapeseed and hoard wheat and barley through too low prices, and the reduction of purchases by processors, which complete the processing of rapeseed and proceed to the purchase and processing of sunflower, which reduces competition in the market.
