Tight Canada rapeseed supplies disrupt exports in the global market

Published 2021년 12월 10일

Tridge summary

Canada's 2021/22 rapeseed production is expected to drop by 400,000 tons to a 14-year low of 12.6 million, leading to a decrease in both crush and exports. The smaller crop size and tight beginning stocks have resulted in high demand, with crush margins causing a disproportionate impact on exports. Major rapeseed destinations like the EU, UAE, China, and Japan have seen significant declines, while North American markets have experienced less impact. Australia's rapeseed production is projected to increase, potentially offsetting the reduced Canadian exports. Canada's rapeseed oil production is also expected to decrease due to lower oil content from high temperatures, leading to a drop in exports, particularly to China. China is likely to shift to sunflowerseed oil from Russia and Ukraine as an alternative, given the increased production of sunflowerseed oil in these countries.

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

Original content

Canada rapeseed production in 2021/22 is forecast down 400,000 tons this month to a 14-year low of 12.6 million. With beginning stocks already tight due to strong demand over the past few years, the smaller crop is suppressing available supplies for both crush and exports. However, due to strong Canadian crush margins, the disruption is disproportionately affecting rapeseed exports over crush. Through the first 3 months of the marketing year, crush is down 9 percent while exports are down by almost 50 percent. The plummet in Canada rapeseed exports through the first 3 months of 2021/22 has affected all its major destinations. Exports to the EU fell by nearly two-thirds, the UAE experienced a 50-percent dip, and China and Japan saw 40-percent declines. Markets in North America experienced more muted declines with Mexico down 12 percent and the United States down just 4 percent. With tight global supplies and Canada exports plunging, major importers will likely turn to Australia to ...

Source: Agfax