December 16, 2013

EU to see rising rapeseed production in 2014-15

According to French-based analyst, Strategie Grains, rapeseed production in the EU for 2014-15 will rise to 21.3 million tonnes, up 2.4% from 20.8 million this season as higher yields outweigh a drop in planted area.


The average yield in the next rapeseed crop would reach 1.3 tonnes per acre, up 3.25% from 1.25 tonnes per acre in this year's harvest, offsetting an expected fall in area to 16.31 million acres. The latter figure is a drop of 1.5% from 16.56 million acres, Strategie Grains said in a monthly oilseed report.


The rise in EU output would be supported by a rebound in France, where the crop is seen 800,000 tonnes higher at 5.1 million tonnes. The 2013 French crop fell 20% on the year due to poor weather.


Strategie Grains' first production forecasts for the 2014-15 EU oilseed harvest also projected that the sunseed crop in the EU would fall 5.7% to 8.2 million tonnes from an estimated 8.7 million this season.


Production is notably expected to fall in Bulgaria and Romania after exceptionally good harvests this year, it said.


The French analyst had estimated last month that the oilseed area in the EU would fall in the next harvest due to a decline in profit margins for growers, as well as more attractive margins for wheat compared with rapeseed.


Rapeseed in the EU is almost exclusively a winter crop which is seeded in late summer. Sunseed is planted in spring, hence, the 2014-15 crop has yet to go into the ground.


The supply for current European rapeseed supply is tight, in contrast to ample global supply fuelled by a record Canadian crop, the analyst said.