07.
06.18
13:34

In the future, tighter rapeseed supply due to drought. - Prices but stable

Decreased rapeseed crops in 2018 in the EU and Germany   Oilseed rape harvesting in EU countries has suffered regionally differently from adverse weather conditions during the order period in autumn 2017, and more recently from prolonged periods of drought. The latest estimation results on average result in a significantly lower rapeseed harvest in 2018.   The EU Commission estimates a harvest of around 21 million t at the end of May. The slightly larger EU acreage is more than compensated for by the lower expected area yield.   In the individual Member States, however, the results vary widely.In the largest production area in France, the harvest is increasing to over 5.1 million tonnes, although larger than in the weak previous year but well below the 5-year average. The German rapeseed production was at least on par with the French for years, but falls this year to approx. 4.1 million tons. The rapeseed production in Poland has suffered twice from frost defrost conditions and the recent dry period. The EU Commission estimates 15.5% crop losses, in Poland itself will be around. 20% lower harvest expected. In the UK, a scarce average crop is expected.   The Czech Republic and Romania are 11% above the weak result of the previous year. In the other small production areas an average harvest reduction of 3% is estimated.   The EU rape consumption estimates the EU-Kom at just over 25 million t. This results in an import requirement of approx. 4 million t.However, the forecast is likely to be too high, because the rapeseed oil sales suffers from the weak demand of the biodiesel industry.   The German Raiffeisenverband (DRV) has reduced its latest June estimate for the German rapeseed harvest to just over 4 million tonnes. The strongest production loss of almost 40% is estimated for Schleswig-Holstein; Half of the reduction is attributable to reduced acreage due to weather conditions and lower earnings. Mecklenburg-Western Pomerania, Lower Saxony and Thuringia each harvest between 12 and 15% less than the previous year. In NRW -5% are expected.   Better rapeseed crops are predicted in the other federal states, whereby the weak previous year's result must be taken into account in individual regions.  Scarce rapeseed volumes result in a tight market supply, yet price movements are kept within tight limits. The competing palm and soybean oil provide. The debate on imports of biodiesel from Argentina and Indonesia also plays a role. The recent Argentine export tax on biodiesel could provide some relaxation.   At least the rape courses on the stock exchanges have become more attached. However, for larger flights the driving forces are not strong enough.

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