April 11, 2012

EU rapeseed production at low level in 2012

Oil World said on Tuesday (Apr 10) that EU is again heading for a frustrating rapeseed crop this summer although the harvest may be slightly up on the year.

"In our revised, but still very tentative estimate, we place EU rapeseed production at 19.2 million tonnes to be harvested later this year against 19.1 million tonnes last year," it said.

This would still be well down on the 21 million tonnes harvested in 2010.

EU benchmark rapeseed futures in Paris touched a 13-month high on April 5 because of fears about winter damage to European crops coupled with expectations of poor South American soy harvests.

"In Europe the price appreciation was partly caused by reports about larger than expected damage to winter rapeseed," Oil World said. "Although the extent is not yet exactly known, some sources point to partly considerable damage."

Oil World's forecast is slightly higher than the 19 million tonnes forecast by French consultancy Offre & Demand Agricole (ODA).

Germany's 2012 crop is forecast by Oil World to recover to 4.9 million tonnes from the weather-reduced 3.8 million tonnes last year. France's harvest is seen little changed at 5.3 million tonnes. But Oil World expects some major rapeseed crop losses in the eastern EU.

Romania's 2012 rapeseed crop is forecast by Oil World to fall to 0.2 million tonnes from 0.9 million tonnes and Bulgaria's to 0.3 million from 0.5 million.