July 20, 2011

Ukraine's 2011 rapeseed crop may fall

Ukraine's 2011 rapeseed crop could fall to 1.3-1.4 million tonnes in 2011, down from 1.47 million tonnes harvested in 2010 in the key exporting country, Hamburg-based oilseeds analysts Oil World said on Tuesday (Jul 19).

Ukraine's disappointing crop could further tighten rapeseed supplies in the EU, where a major oilseed supply gap is looming after a poor rapeseed crop, it said.

In June, forecasters had expected Ukraine's crop to rise on the year, the 2010 harvest was low because of drought.

"The likely reduction of the Ukrainian rapeseed crop size to only 1.3-1.4 million tonnes from expectations of 1.5-1.6 million tonnes further complicates the shortage on the European market in 2011-12," Oil World said.

Ukraine traditionally exports large volumes of its rapeseed harvest and had been expected to be a heavy seller to Europe in the coming months with the EU 2011 rapeseed crop forecast to fall to 18.86 million tonnes from 20.56 million tonnes last year.

The new indications of a poor Ukrainian crop mean EU rapeseed importers are already seeking alternative supplies, Oil World said.

"We hear reports of additional significant rapeseed exports from Australia to Europe, bringing some relief to the EU market," it said.