June 15, 2011


Drought to cut EU 2011-12 rapeseed crop to alarming levels



Drought is likely to cut the EU's 2011-12 rapeseed crop to 18.91 million tonnes, down from 20.56 million tonnes in 2010-11, Hamburg-based oilseeds analysts Oil World said on Tuesday (Jun 14).


"The deterioration of rapeseed production prospects is reaching alarming proportions," Oil World said. "The damage is most severe in Germany and France, the two major producers in the community. But sizeable crop losses also occurred in Poland as well as parts of the UK and Denmark."


Germany's 2011-12 rapeseed crop will fall to 4.65 million tonnes from 5.75 million tonnes last season, Oil World forecasted.


France's crop will fall to 4.70 million tonnes from 4.82 million tonnes and Poland's to 1.80 million tonnes from 2.08 million tonnes.


Despite dry weather, the UK crop will still rise to 2.34 million tonnes from 2.23 million tonnes, it said.


"In view of the corresponding decline in rapeoil production, consumers in the EU will be faced with tight supplies and will have to struggle to cover their requirements," Oil World said.


Increased EU rapeoil imports are likely from east Europe and North America, it said. "It will be difficult for the EU biodiesel industry to find sufficient feedstock," it added.


This could mean increased EU biodiesel imports from Argentina, Indonesia, and Singapore, it said.

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