Global Rapeseed Production and Demand
The International Grains Council (IGC) predicts that global rapeseed production will not be able to meet demand in the upcoming season, leading to a decrease in reserves.
Significant Decrease in Rapeseed Production in the USA and Ukraine
The IGC has adjusted its expectations for the global rapeseed balance in the upcoming season. The forecast now predicts a global production of 88 million tons, which is a 3% increase from the previous year. However, there has been a decrease in the estimate from March, with 400,000 tons less rapeseed expected.
Rapeseed Production in the EU
The EU is expected to produce 19.3 million tons of rapeseed, surpassing the previous year's level by 14%. The EU is set to become the world's largest rapeseed producer once again, with concerns about drought in the southeastern region.
Small Increase in Canada and Australia
Following the EU, Canada is the world's largest rapeseed producer, with estimates of production reaching 18 million tons. Australia is also expected to see an increase in production.
Supply and Demand Gap
The IGC projects a larger gap between supply and demand for rapeseed in the upcoming season, with a deficit of 1.4 million tons. This will lead to a decrease in global reserves.
Outlook on Rapeseed Trade
The rapeseed trade is expected to decrease in the coming year, with fewer shipments over the seas. The EU's import demand is likely to shrink due to a larger harvest. Canada is expected to export more to the EU amid recent geopolitical developments.
