April 9, 2015

 

EU rapeseed output to decline 11.6%--USDA forecast

 

 

The US Department of Agriculture (USDA) has forecast that rapeseed production in the EU in 2015-16 would decline by 11.6% to 21.3 million tonnes, still higher than the European Commission's forecast of 21.1 million tonnes but lower than the forecasts of the industry group Coceral at 21.6 million tonnes and the analysis group Strategie Grains at 21.9 million tonnes.

 

The decline would be caused by farmers' cutdown on sowings of the oilseed due to expected weaker demand and lower prices, as the EU has lowered its biofuel targets. Rapeseed oil is also used in making biodiesel.

 

The EU's subsidy reforms have also put less importance on the seeding of rapeseed.

 

The lower forecast production will subsequently result in lower rapeseed stocks next season at only 1.30 million tones, almost 50% less than the current stock, according to the USDA.

 

The USDA said the EU won't be able to count on imports to make up for any shortfall in domestic production, as "supplies on the world market are also projected low".

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