W8: Weekly Canola & Rapeseed Update
Global
Quotes Continue to Weaken on the CBOT Exchange
The situation with rice, oats, and canola quotations on the SWOT and ICE exchanges changed between February 10 and February 17. Rapeseed experienced the smallest loss in a week as the quotes combined into one impulse and moved down one after the other. As predicted by experts, Canadian rapeseed quotations decreased last week but only slightly for the week following three weeks of growth and a slowdown in growth rates.
Fall In Quotations of Most Oilseeds on World Stock Exchanges
Most oilseed quotations on the international markets decreased over the past week. On Matif, only rapeseed saw an increase of 2.5%. The price of rapeseed on the Paris stock exchange maintained its upward trend for the fourth week in a row as it recovered from earlier declines that resulted in the identification of a 1.5-year low on January 23 of this year. The price rose to its highest level on Friday, January 13, 2023.
Rapeseed prices in a contract for delivery in May increased 2.0% on Friday, reaching USD 598.92/MT, which is 18.9% less YoY and 2.5% higher WoW. On Friday, the price of canola in Canada increased by 0.6% to USD 610.24/MT and decreased.
China
Soon, pressure on canola prices will increase due to predictions of a decline in demand for canola oil and meal in China and an increase in the supply of soybeans on the global market. Canola oil saw the largest drop in demand among all types of oil following the Spring Festival, but canola meal may see a small increase in demand in the coming months. Rapeseed oil demand prices currently stand at USD 1,450/MT, but they will drop as rapeseed processing picks up.
Europe
The EU Authorises the Use of Two Genetically Modified Rapeseed and Soybean Crops in Food and Feed
Two GM soybean and rapeseed crops may be used in food and feed, according to Brussels. This Wednesday, the European Commission approved a genetically modified oilseed rape and reaffirmed approval for a genetically modified soybean for use in food and feed, but it forbids the cultivation of these plants in the European Union (EU).
Australia
Australia Sets New Canola-Shipment Record
According to figures from the Australian Bureau of Statistics, Australia shipped 883,885MT of canola in December, surpassing the 854,950MT shipped in March 2022 to create a new monthly record. The number for December is up 16% MoM from the 761,772MT delivered in November, with Belgium accounting for 241,577MT of that total. Germany came in second with 183,671MT, and the Netherlands came in third with 129,449MT.
France
In France, the Cultivation Area of Rapeseed and Winter Cereals Was Increased
It appears that French farmers planted more winter oilseed rape than initially assumed. The Ministry of Agriculture's statistical department's (Agreste) most recent estimates indicate that approximately 1.39M hectares of winter oilseed rape were sown nationwide last fall. This would represent a 9.0% rise over the previous year. By 10.9%, the average for the years 2018 to 2022 would be surpassed. The extent of the winter oilseed rape that had been sown was still around 1.29M hectares when experts made their initial estimate in December.
Ukraine
Farmers in Kirovohrad Oblast are reducing their grain production in favor of oil crops. Farmers in the Kirovohrad region planted 67K hectares of winter rapeseed and 444.1K hectares of winter cereals for the 2022 harvest. Nevertheless, 398.3K hectares of winter cereals were sown for the 2023 harvest, while 83.4K hectares of winter rapeseed were planted. In other words, compared to the previous year, the rapeseed area expanded by 21%.
By Mid-February, From 1-6% of Plants in Winter Crops Were Damaged by Rodents in Ukraine
As of February 16, mice-like rodents in Ukraine had caused 1–6% plant damage in rapeseed and winter grain harvests. The weather in W7 was marked by insignificant positive indicators during the day and frosts at night, according to the experts at the Department of State Food and Consumer Services. The majority of the day was cloudy or partly cloudy, and precipitation was noted in the form of rain and sleet. Winter crop production during the second decade of February was mostly in a state of shallow dormancy.
Paraguay
Paraguayan Canola: Growing Demand and Great Planting Capacity in the Country
If a sustainable rotation strategy is pursued, Paraguay has the potential to grow in the canola region given that 30% of the soybean land is here ready to sow this crop. The country would have roughly 1M hectares available to cultivate canola. In addition, there will be a major expansion of the canola planting area as a result of the rising demand for canola seeds, which was already a problem last year to the extent that more plantings were prevented by a lack of seed supply.
