Weekly Product Updates

W6 Canola/Rapeseed Update: Kazakhstan Eyes Increased Rapeseed Oil Supplies to China, Romania's Rapeseed Sowing Area Surges in 2023/24 MY

Crude Canola Oil & Rapeseed Oil
Published Feb 19, 2024
In W6 in the canola oil landscape, in Jan-24, the Krasnoyarsk Territory in Russia notably increased its exports of grain, processed products, and oilseeds destined for China, with a significant portion, including 12.2 thousand mt of grain and 6.4 thousand mt of rapeseed,. Meanwhile, the Andropovsky district of the Stavropol Territory experienced 25.6 mm of precipitation, affecting winter rapeseed crops adversely. Kazakhstan faced a 34% YoY decrease in rapeseed harvest in 2023, yet rapeseed oil production reached record levels, primarily exported to China. Romania saw a surge in biofuel production capacity and increased rapeseed cultivation, while adverse weather in Ukraine led to a shift towards soybeans and sunflowers due to challenges in rapeseed cultivation.

Russia’s Krasnoyarsk Territory Exported 12.2 Thousand MT of Rapeseed in Jan-24

The Krasnoyarsk Territory exported 52.7 thousand metric tons (mt) of grain, processed products, and oilseeds in Jan-24, an increase from 33 thousand mt in Jan-23. Notably, 12.2 thousand mt of rapeseed were included in this export. A significant portion of the region's grain and rapeseed exports, including 12.2 thousand mt of grain and 6.4 thousand mt of rapeseed, was destined for China. Additionally, 15.3 thousand mt of grain were sent to Mongolia, 7.1 thousand mt of grain, and 1 thousand mt of rapeseed to Kazakhstan. Meanwhile, 4.8 thousand mt of rapeseed were exported to Belarus and 0.9 thousand mt of grain to Kyrgyzstan.

Challenges for Winter Rapeseed Crops in Stavropol Territory in Jan-24

On Jan-24, the Andropovsky district of the Stavropol Territory, Russia, experienced 25.6 millimeters (mm) of precipitation. While the soil moisture reserves are generally satisfactory, winter rapeseed crops face significant challenges. Out of a total area of 1.58 thousand hectares (ha), 0.8 thousand ha have already been lost, and the remaining crops are also at risk. Specialists are conducting ongoing phytomonitoring to assess the situation.

Kazakhstan's Rapeseed Harvest Dips 34% in 2023, Demand Remains Strong

Kazakhstan experienced a 34% year-on-year (YoY) decrease in rapeseed harvest in 2023, totaling 123.2 thousand mt, down from 188.6 thousand mt in 2022. This decline in harvest coincided with a reduction in harvested area to 92.6 thousand ha from 133.3 thousand ha in 2022, with a yield of 1.33 mt/ha, down from 1.42 mt/ha the previous year. Despite these challenges, the demand for rapeseed in Kazakhstan's domestic market remains high. With processing capacity exceeding 1 million metric tons (mmt) per year, nine times higher than the gross harvest, rapeseed processing continues to be crucial in Kazakhstan's agricultural sector despite fluctuations in harvest yields.

Kazakhstan's Rapeseed Oil Production Surged in 2022/23 MY, China Remains Key Export Market

Rapeseed oil production in Kazakhstan has seen significant growth, reaching a record 79 thousand mt in the 2022/23 marketing year (MY), compared to an average of 32 thousand mt in the preceding years. China stood as the primary buyer of Kazakh rapeseed oil, accounting for 74% of total exports in the 2022/23 MY, a slight decline from previous years where China's share reached 98%. These figures indicate a potential diversification in export destinations for Kazakh rapeseed oil beyond China.

Romania's Rapeseed Sowing Area Surged in 2023/24 MY

Romania has experienced significant growth in biofuel production capacity, relying on its own raw materials and exporting surplus crops mainly to European countries. In the fiscal year 2023/24, the total area dedicated to oil crops in Romania reached a record level since 2015/16, with increased planting across all oil crops, particularly rapeseed. This shift led to changes in crop structure, with increasing rapeseed's share to 32% while sunflower's share decreased to 60%.

Ukraine's Rapeseed Cultivation Hindered by Adverse Weather

Adverse weather conditions during autumn prevented the expansion of rapeseed cultivation in Ukraine, leading to expectations of increased soybean and sunflower production in 2024. Dry weather thwarted plans for many agricultural enterprises, particularly in sowing rapeseed, prompting a shift towards soybeans and sunflowers. Additionally, concerns about crop yield depletion due to consecutive sunflower planting prompted farmers to seek a return to traditional crop rotations amidst challenging times.

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