W7 Canola/Rapeseed Update: Global Rapeseed Exports See Decline as Canada and Ukraine Reduced Shipments in Late 2023

Published 2024년 2월 23일

In W7 in the canola oil landscape, global rapeseed exports experienced a slight decline in the second half of 2023, totaling 8.4 mmt, with Canada and Ukraine reducing shipments, while the EU, UK, and Pakistan saw decreases in imports. Meanwhile, the Russian Ministry of Agriculture proposed extending the ban on rapeseed exports until August 31, 2024, following a previous extension to February 29, 2024. In Kazakhstan, the rapeseed harvest declined by 34% YoY in 2023 compared to 2022, attributed to reduced sown areas and yields despite high demand and increased oil production.

Global Rapeseed Export Declined Slightly in Late 2023

According to experts, global rapeseed export experienced a slight decline in the second half of 2023, totaling 8.4 million metric tons (mmt) from Jul-23 to Dec-23, down by 0.6 mmt or 6% year-on-year (YoY). Canada and Ukraine, two major exporters, notably reduced their shipments by 0.5 mmt and 0.4 mmt, respectively, while Australia slightly increased its oilseed shipments. Among key importers, the European Union (EU) saw a decrease in rapeseed shipments to 3.2 mmt, while the United Kingdom (UK) and Pakistan also experienced declines in imports during this period.

Russian Ministry Proposed Extension of Rapeseed Export Ban

The Russian Ministry of Agriculturehas proposed extending the ban on rapeseed exports from the country until August 31, 2024. The draft resolution, published on the federal portal of draft regulatory legal acts, suggests a temporary ban from March 1 to August 31, 2024. This follows a previous extension by the Cabinet of Ministers last August, which prolonged the export ban until February 29, 2024.

Russia's Role in Global Sunflower and Rapeseed Trade

Over the past two decades, Russia has secured second place in global trade for sunflower oil, meal, and rapeseed oil, emphasizing its prominence in non-GMO canola and soybean products. Despite consistently ranking second in sunflower oil exports and competing closely with Ukraine for the top spot, Russia faces challenges due to Ukraine's low and declining domestic consumption of vegetable oils. Export duties, such as those on soybean and rapeseed oils, and fluctuating duties, like those on sunflower meal, further hinder Russia's efforts to increase oil and fat products and raw materials shipments.

Top Russian Domestic Oilseed Crops of 2023 Revealed

In 2023, domestic varieties of spring and winter rapeseed, oilseed flax, and mustard emerged as the top-ranking agricultural crops by seeding volume, according to the Federal State Budgetary Scientific Institution Federal Scientific Center "All-Russian Research Institute of Oilseeds". The leading variety in the spring rapeseed category was Forpost KL, notable for its herbicide resistance. Next was the 55 region variety, a consistent leader in seed sowing volume over several years. Elvis took the top spot in the winter rapeseed category, with other prominent varieties, including Sarmat and Selegor.

Kazakhstan's Rapeseed Harvest Declined in 2023 Despite High Market Demand

In Kazakhstan, the rapeseed harvest at the end of 2023 amounted to approximately 123.2 thousand metric tons (mt), indicating a significant 34% YoY decrease compared to 2022's harvest of 188.6 thousand mt. This decline was attributed to reduced sown areas under the crop, decreasing from 133.3 thousand hectares (ha) in 2022 to 92.6 thousand ha, as well as a decline in yields from 1.42 mt/ha to 1.33 mt/ha. Despite these challenges, the demand for rapeseed in Kazakhstan's market remains high, with local plants having a processing capacity of over 1 mmt of oilseeds annually, significantly surpassing the volume of the gross harvest. Notably, rapeseed oil production has seen a remarkable increase, exceeding 79 thousand mt in the 2022/23 marketing year (MY), a record high. China accounted for a significant portion, 74%, of total rapeseed oil sales abroad at the end of last season.