Growing demand and reduce production support prices for rapeseed
Rates for rape remain quite high due to the reduction of production in EU and increased demand from China. The markets of oilseeds presses the sharp fall in the price of us soybeans, caused a trade war between the US and China. However, to compensate for the decrease in supply of soybeans from the United States, in China actively import oil from other countries.
In August China has reduced imports of soybean in comparison with July by 16%, and since the beginning of the year it decreased by 2% to 59.5 million tons, compared with the corresponding period last year.
Experts Oil World through the dry weather has reduced the forecast of rapeseed production by the EU in the current year to 19.35 million tonnes, which is 11.2% yield indicator 2017/18 MG. According to preliminary data the harvest of oilseeds in main producing countries, the average yield is the lowest for the last 7 years of 2.93 t/ha, which is 10% lower than the level in 2017. Because of the drought, France and Germany can reduce their acreage of winter rapeseed for harvest in 2019 by 10%, which will further support prices.
After soybean prices the price of rapeseed on Euronext in 10 days has fallen from 383 to 371,25 €/t, but after yesterday's release of the forecast on the reduction of production increased by 2 €/t to 373,25 €/t or 436,7 $/t
prices of canola in Chicago in 10 days went down by 3.8% from 511 to 491,9 CAD/t or to 380, 6 $/t, while soybean futures leave low 309,6 $/t
In Ukraine, the price of canola at the port dropped to 420-423 $/t or 13700-13900 UAH/t due to lower demand from both processors, and moving to acceptance of a sunflower, and from exporters that complete the execution of export contracts.
scheduled for planting 888 thousand hectares as of August 29, winter rape sown 656 thousand hectares against 475 thousand hectares at the same date in 2017, however, dry weather is not conducive to sprouting. In 2018 in Ukraine with 1 million hectares harvested of 2.88 million tons of rapeseed.
