Rapeseed production forecast in the EU increased to 22 MT
The forecast of rapeseed production by the EU countries in 2017/18 increased from 21.8 mln tons to 22 mln tons, and the estimate of rapeseed imports in the EU — from 3.9 mln tons to 4-4.1 mln tons, which will provoke the carryover stocks to rise to the highest indicator of the last 5 seasons — 2 mln tons, writes GrainTrade.
"The import of rapeseed to the EU will drop by 0.96 mln tons to 4 mln tons. The major suppliers of rapeseed in the EU in the current season are Australia, Ukraine and Canada. As compared with 2016/17, Australia reduced rapeseed exports to the EU from 3.12 mln tons to 1.82 mln tons, Canada from 0.76 mln tons to 0.38 mln tons. Ukraine exported 1.67 mln tons of rapeseed to the EU," the message says.
The winter rapeseed crops in the EU are in good condition, which gives hope for a good harvest and further reduction in the import of rapeseed to the EU.
"Favorable conditions for crops wintering in Ukraine will provide for more than 2-2.2 mln tons of rapeseed. Domestic manufacturers are already beginning to contract the first shipments of rapeseed of a new crop with European buyers, who are the main consumers of Ukrainian rapeseed," the message states.
August rapeseed futures on Euronext are traded at EUR 348 per ton, which, thanks to the strengthening of the euro, corresponds to last year's USD 435 per ton.
Now, traders in Ukraine offer rapeseed for USD 415-420 per ton with delivery to the port in August, which corresponds to the level of procurement prices in October-November 2017.
Prior it was reported that Ukraine over 8 months of 2017/18 increased rapeseed exports by 2.2 times.