W7: Weekly Canola & Rapeseed Update
Australia
Australia Crop Trade Shifts Focus After Record December
After a bountiful harvest, Australia exported record-high quantities of all three of its key crops, including wheat, canola, and barley, in December. Nevertheless, early line-up figures indicate that wheat and canola shipments may surpass barley shipments in the months to come. In December, Australia's canola exports tripled to 884K MT. The EU received more than three-quarters of the volume, with Pakistan being the next biggest single purchaser. Shipments to ports in Belgium, Germany, the Netherlands, and France as a whole reached 680K MT, up from 275K MT the year before.
France
France Raised Estimates of Sown Areas Under Wheat and Rapeseed
Analysts from the Ministry of Agriculture in France increased their estimate of the area sown with rapeseed in 2023 to 1.34M hectares from 1.29M hectares in the December report, which is 9% higher YoY and 11% higher than the yearly average.
Russia
The Ban on the Export of Rapeseeds From Russia Will Be Extended Until the End of August
It is possible that the temporary prohibition on the export of rapeseed seeds from Russia could be extended until the end of August. The Ministry of Industry and Commerce created a drafting government decree on this. To safeguard the domestic food market, this action is required. It is noted that this will enable attracting additional investments in rapeseed seed processing, reopening processing facilities, and maintaining an incentive for production for agricultural producers, which will provide the livestock industry with rapeseed meal, which is highly sought-after as a high-protein feed for livestock.
The Russian Ministry of Agriculture believes it is necessary to impose quantitative restrictions on the import of particular agricultural seed varieties from unfriendly foreign countries. On February 17, 2023, it is planned to include rapeseed, rye, barley, corn, soybeans, rapeseed, sunflower, and sugar beet for the period of January 1, 2024, to December 31, 2024, inclusive, for the subcommittee on customs-tariff and non-tariff regulation to consider.
India
India to Harvest Record Wheat and Rapeseed Crop in 2023
According to the government, India's rapeseed production in 2023 could increase 7.1% YoY to a record 12.8MMT. The largest edible oil importer in the world might buy less soy oil, less sunflower oil, and more rapeseed oil if rapeseed production increases.
United States
Slight Price Increases on the Produce Markets in the EU and the US
Prices on the global and European produce markets increased at the end of W7. Wheat increased by 0.2%, maize increased by 0.4%, soybeans increased by 0.1%, and rape also increased in price by 0.1%, but there were no notable moves in Chicago. In Europe, the courses of all four priority agricultural products, mill wheat, corn, rapeseed, and fodder wheat, also closed in the red.
