W13: Weekly Canola & Rapeseed Update

Global

Downward Correction of Oil Quotations on Global Markets

Prices dropped at March 30's oil futures quotations on international stock markets. On the Paris Stock Exchange, the price of rapeseed in a contract for delivery in May dropped by 2.7% yesterday, coming in at USD 509.39/MT and 51.5% lower YoY. On the Winnipeg Stock Exchange, the price of Canadian canola plummeted 32.6% in the past year to USD 552.38/MT.

Increase in Oilseed Prices on Global Stock Exchanges

The price of oil futures increased during March 29's trading on international stock markets. On MATIF, rapeseed saw the largest rise, at 1.6%. Rapeseed prices have resumed their upward trend after a brief pause at the Paris stock exchange. Last Wednesday's price low of more than two years has already seen an 11.4% rebound in quotations. On the Paris Stock Exchange, the price of rapeseed under a contract for delivery in May increased by 1.6% yesterday, reaching USD 523.21/MT.

Most Oilseeds Went Up in Price on Global Stock Exchanges

The quotes for oil futures on international stock exchanges on March 28 ended with price increases. The only one that did not change the quotations of rapeseed on the Paris stock exchange. The price of rapeseed for the May delivery contract on the Paris Stock Exchange remained the same at USD 514.76/MT. On the Winnipeg Stock Exchange, the price of Canadian canola increased 1.2% yesterday to USD 564.26/MT, after declining 33.3% in the previous year.

Europe

EU Expects Record Harvest of Oilseeds

2023's oilseed crop is expected to set a new record, according to the European Union. Specifically, more sunflower and soybean seeds are being sowed, but rapeseed acres are also growing. This is stated by the European Commission in its spring prediction. The projected 2023 rapeseed production is 19.8 MMT. This is a 1% increase above the 19.6MMT collected in 2022. The crop estimate for this year is 15% higher than it was for the previous five years. Almost 6M hectares of winter oilseed rape were sown last year as a result of relatively high pricing throughout the sowing period.

Experts Lowered the Forecast for Rapeseed Production in the EU

The potential for rapeseed production in the EU is lowered as a result of the lack of precipitation in southwestern Europe, particularly in Greece, Bulgaria, and Spain. In this regard, the prediction for oilseed output in MY 2023/24 was lowered by 200,000 MT from the initial estimate  to 20.4 MMT, a growth of 900,000 MT annually.

Poland

Wheat Imports From Ukraine Are Significant, but Maize and Rapeseed Have Declined

Due to a large drop in domestic grain prices and increased import challenges brought on by border grain controls that are more stringent, imports of maize and rapeseed from Ukraine have decreased. Up to March 19, the first 38 weeks of the current 2022/2023 season saw an estimated 697,000MT of rape imported from outside the EU.

Ukraine

Spring Sowing in Ukraine’s Lviv Region Started With the Sowing of Spring Wheat and Rapeseed

The Lviv region's agricultural companies have begun planting spring crops for the 2023 harvest. In W13, the regions of Chervonohrad, Stryi, and Lviv started sowing spring wheat and spring rape. 700 hectares of spring wheat and 690 hectares of spring rapeseed have been seeded as of March 24.

Sown Areas for Sunflower, Soy and Rape Will Increase by 10-15%

It is anticipated that in 2023, there would be a little drop in the area planted with maize and grain crops and a rise in the area planted with oil crops. First Deputy Minister of Agrarian Policy and Food of Ukraine Taras Vysotskyi made this announcement. Sunflower, soy, and rapeseed will all experience an increase in sown area of 10–15%.

Russia

Tomsk Region Continues to Increase Exports of Agricultural Products

The Federal Customs Service reports that 17,800MT of agricultural goods from the Tomsk Region were exported for a total of USD 18.9M in Q1 of 2023. The region has exported oil and fat products worth USD 11.9M since the start of 2023, which is twice as much as it exported during the same time period in 2022. Rapeseed oil exports, for example, surged from USD 6.1M to USD 10M.

Angara Region in Russia to Reduce Rapeseed Area by 7.5% in 2023 Due to Export Ban

The total harvest of rapeseed in the Irkutsk region, where it has increased 7.6 times over the previous five years, is expected to decrease by 7.5% in 2023. Rapeseed will be grown over an area of 72,400 hectares, a 7.5% less from the level of 2022.