February 26, 2014

Global rapeseed exports to drop to a three-year low

In the first half of 2014, global exports of rapeseed will fall to a three-year low, as Canada is unable to keep up with demand, Oil World said.

From January through June, global shipments will be 6.01 million tonnes, 7.4% less than a year earlier, the Hamburg-based researcher said in a report. Global rapeseed production will be 69.58 million tonnes in the 2013-14 season, up 8.8% from a year earlier. Canada, the biggest exporter, doesn't have enough rail cars to move its increased supply, so some Asian buyers switched to Australia, Oil World said.

Canada's transportation system has been stretched this season as crops competed with rising shipments of crude oil and as farmers harvested record amounts of everything from rapeseed and wheat. Oil World cut its estimate for Canada's exports in the full 2013-14 season to 7.6 million tonnes and raised its outlook for the country's inventories to 3.5 million tonnes.

Oil World said that supplies also will be limited through June from Russia and Ukraine, which are "largely sold out" of rapeseed until the next harvest.

EU imports in the 2013-14 season that started in July will be 3.4 million tonnes, 200,000 tonnes lower than estimated last month, Oil World said. Japan's imports will be 2.38 million tonnes, 100,000 tonnes lower than forecast in the prior month, Oil World said.