September 16, 2010

Belarus bans rapeseed exports to Europe

Belarus has banned exports to Europe of rapeseed oil, and effectively restricted shipments of rapeseed too, in the latest sign of trade curbs that poor crops are prompting in Russia.

The country has, until March, stopped the sale of rapeseed oil to the EU, following a harvest of the oilseed which fell short of expectations. The curbs are expected, in effect, apply to the oilseed itself, according to reports.

The country is one of the smaller agricultural forces in Russia, and in the rapeseed complex ranks well below production giants such as Canada.

Nonetheless, its exports of rapeseed oil were last year, at 80,000 tonnes, not far below those of Australia, viewed as one of the complex's majors, which shipped 94,000 tonnes, according to USDA data.

Belarus's shipments of rapeseed, at 170,000 tonnes, compared less favourably with those of Australia, which exported a little over 1 million tonnes.

The curbs come at a time of a global squeeze on supplies of rapeseed and its canola variant. 

Meanwhile, Oil World, the German-based analysis group, warned on Tuesday, even while raising its forecast for global production by 900,000 tonnes to 64.42 million tonnes, that supplies were still thin enough to require demand rationing-implying that prices will remain supported.

The USDA, which sees global rapeseed production at 57.1 million tonnes, on Monday noted that "robust worldwide demand continues to support rapeseed prices in the benchmark Hamburg market", where prices averaged US$479 in August, 23% higher than in June.

They also come as Russia and Ukraine, Belarus's partners in a customs, have limited trade in crops at some levels.

Russia has banned grain shipments until the end of the year, and signalled the curbs will last well into 2011, and is considering curbs on sunflower shipments.

Ukraine, which on Wednesday cut its grain export forecast by 1.1 million tonnes to 12.7 million tonnes, has not imposed official bans. But merchants have complained over ships being held in port for, what they claim, are unclear reasons, with 24 vessels currently stuck.