W1 Canola/Rapeseed Update: Ukraine Sets Record in Rapeseed Oil Exports in 2023/24 MY, Germany Forecasts 4.7% YoY Decrease in 2024 Acreage

Canola Shines in EU Oilseed Processing, Boosting 2023 Cumulative Figures to 48.2 MMT

In Q4-23, oilseed crop processing in the European Union (EU) remained consistent at 12.2 million metric tons (mmt), comparable to the same period in 2022. Despite this, the cumulative oilseed processing for 2023 reached 48.2 mmt, surpassing 2022 by 1.5 mmt and exceeding the five-year average by 2 mmt. Canola played a significant role in this achievement, with 6.38 mmt processed in Q4-23, contributing to a year-end total of 24.4 mmt compared to 22.58 mmt in 2022 and an average of 22.81 mmt over the past five years. The growth in rapeseed processing was particularly notable in Germany at 800 thousand metric tons (mt), the Netherlands and the Czech Republic at 200 thousand mt each, as well as Poland and France at 100 thousand mt each.

Ukraine's Rapeseed Oil Exports Surge Sixfold in H1 2023/24 MY

In the initial half of the 2023/24 marketing year (Jul-23 to Dec-23), Ukraine achieved a record in rapeseed oil exports, reaching 356 thousand mt, almost six times higher than the corresponding period in the previous season. The notable increase was propelled by global demand for rapeseed oil at favorable prices, prompting Ukrainian plants to boost processing amid challenges in acquiring sunflowers during the off-season. The EU received 54% of the total shipments, with China accounting for 31% of the volume.

Germany Expects 4.7% YoY Drop in Rapeseed Acreage for 2024

Germany's National Statistics Agency estimates a 4.7% year-on-year (YoY) decrease in rapeseed acreage for 2024 compared to 2023, with the expected area to be 1.1 million hectares (ha), attributed to unfavorable weather affecting sowing. In the United Kingdom (UK), the regional Early Bird Survey indicates a decline in canola acreage for 2024 (to 317 ha) following two years of increase, attributed to lower buying prices, reduced yields, and decreased production in 2023.

Bulgaria Raised Concerns Over Bypassing Licensing Regulations in Sunflower from Ukraine

Bulgaria's Ministry of Agriculture reported attempts to bypass licensing regulations during the import of sunflower, rapeseed, and corn for sowing from Ukraine. In an online meeting, Ukrainian officials pledged action within two weeks, warning that violating companies could lose export rights. Concerns were also raised about the surge in sunflower imports along the Danube, with potential implications for Bulgarian processors.