EU: Is the price of canola also about to collapse?
Canola Seed & Rapeseed
Poland
Published Mar 22, 2024
Tridge summary
The European Union (EU) is set to see a decrease in its rape crop production this year, with forecasts reduced to 18.3 million tons, marking an 8% drop from 2023. This shortfall is expected to be compensated by increased imports, particularly from Ukraine and Australia, which have so far supplied two-thirds of the 3.8 million tons of rapeseed received by the EU this year. Despite the reduced production, rapeseed prices are anticipated to fall due to the influx of cheaper Ukrainian produce.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.
Original content
A smaller rape crop is expected in the European Union this year, but Ukraine will be ready for export. Their cheap produce can drive prices down hard. In principle, the decreasing production area can also lead to an increase in the purchase price of autumn cabbage rape, but other processes can have the opposite effect. A recent analysis by the German agricultural site Agrarheute foresees a collapse of the rapeseed price. This is based on data from the European Commission, according to which, at the very beginning of March, rapeseed was offered in Ukraine for only 328 euros per ton, which is roughly 100 euros cheaper than EU crops. In Europe so far this year, the price has fluctuated between 410 and 440 euros, while in Canada and Australia it was 435 euros per ton at the beginning of March. It seems that the European rapeseed crop in 2024 will be smaller than last year. Although this could in principle increase prices, the shortage at the same time attracts cheap Ukrainian produce ...
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