Australia's record canola crop and higher production forecasts for the EU are putting pressure on quotes globally

Published 2023년 1월 10일

Tridge summary

January prices for February rapeseed futures in Paris fell by 2.3% to €564.25/t or $605.4/t, due to increased global supply from Canada, Australia, and the EU's projected increase in production. Owing to expansion in sowing areas, especially in France and Germany, the EU is expected to see a rise in rapeseed production in 2023. Australia anticipates its 2022/23 rapeseed harvest to exceed the previous record, thanks to favorable rainfall. In contrast, Canada's canola exports have seen a decrease despite increased production, indicating a drop in demand. Ukraine has also witnessed a decrease in rapeseed purchase prices due to a reduction in exporter purchases and decreased demand.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

January rapeseed prices continued to slide, with February rapeseed futures yesterday in Paris down 2.3% to €564.25/t or $605.4/t, in line with last month's level but down 2 .5% less than the level of last year and 3.5% less than the level at the beginning of the year. Canola is entering the global market from Canada and Australia, putting pressure on prices, especially given the projected increase in planted areas in the EU. According to Oil World forecasts, in 2023 EU countries will increase rapeseed production from 19.1 to 19.6 million tons in 2023 compared to the previous year thanks to the expansion of the sowing area from 5.85 million hectares to 5.94 million hectares, which will become a 5-year maximum Sowing areas will be expanded the most in France - from 1.23 to 1.31 million hectares and in Germany - from 1.08 to 1.15 million hectares, as well as in the Scandinavian countries, in particular in Denmark and Sweden, while in the Baltic countries they will be reduced by 7%, ...

Source: Graintrade