W47 Canola/Rapeseed Update: EU Oilseed Processing Rises in Oct-23, Russia's Rapeseed Harvest Declines in 2023

European Rapeseed Processing Sees 6% MoM Increase in Oct-23

In Oct-23, the European Association of Vegetable Oil Producers (FEDIOL) estimated that oil extraction plants in the European Union (EU) processed over 3 million metric tons (mmt) of oilseeds, a slight increase of 0.014 mmt compared to Sept-23. Of this figure, domestic enterprises processed 1.68 mmt of rapeseed in Oct-23, reflecting a 6% increase month-on-month (MoM). From Jan-23 to Oct-23, rapeseed processing reached 15.93 mmt, marking a 10% year-on-year (YoY) increase.

Challenges in Canadian Grain Production, Resilient Canola

Widespread drought across the Prairies in Canada has led to a decline in grain, pulse, and oilseed production for the 2023/24 season. However, canola production fared relatively well despite the challenging conditions. The 2023 crop stood at 17.4 mmt, only 1.3 mmt lower than the previous year but still 7% below the five-year average of 18.6 mmt. The harvested area of 8.84 million hectares (ha) was higher by 250 thousand ha compared to the previous year. However, the average yield for 2023's harvest is the lowest in a decade at 1.96 mt/ha, down from 2.17 mt/ha in 2022

Russia Faces Lower Rapeseed Harvest in 2023

Russia’s rapeseed harvest in 2023 is lower than the previous year, with a total of 4.4 mmt compared to 4.7 mmt in 2022. This is due to a reduction in the harvested area, from 2.2 million ha in 2022 to 2 million ha in 2023. However, yield increased from 2.09 mt/ha to 2.15 mt/ha. In 2022, the Leningrad region produced 2.6 thousand mt of rapeseed oil. Six farms received nearly USD 13,597 in state support to boost rapeseed production. Consequently, the region saw a 13% YoY increase in rapeseed harvest in 2023, reaching 10.8 thousand mt. Sowing for the 2024 harvest exceeded planned volumes by 11%, with 3.2 thousand ha of winter rapeseed planted. Meanwhile, the Lviv Region of Russia completed winter crop sowing for 2024 on 230 thousand ha, with winter crops for the current year accounting for 30.8% of all sown areas. Covering 46,600 ha, winter rapeseed crops saw a 6.7% reduction in sowing compared to the previous season.

Bulgarian Rapeseed Exports Hit 6-Year Low in Challenging 2023/24 Season

Bulgarian rapeseed exports are experiencing their weakest season in years, with only 100 thousand metric tons (mt) of the oilseed crop since the beginning of the 2023/24 season. This export volume represents a six-year low compared to the same period in previous years. Exports have declined by 41% YoY, and compared to the average of the last five years, exports are nearly 60% lower. The decline in exports is attributed to an increase in processing capacity and a decrease in production. Of the quantities exported in the current season, 800 thousand mt were sold to countries in the EU, while the rest found a market in third countries. A year ago, exports to the EU were 120 thousand mt, and to third countries 60 thousand mt.