Global demand for rapeseed is likely to exceed supply in 2016/17, as it did in 2015/16, according to a press release on 14 July from Germany’s UFOP, the Union for the Promotion of Oil and Protein Plants.
“Consequently, supplies could continue their slide, opening room for price increases in the long term.”
UFOP said the US Department of Agriculture (USDA) was forecasting 2016/17 global rapeseed production at 66.5M tonnes, down just under 1.M tonnes from the previous year.
“Harvests in the top producing countries – Canada, China and the European Union – are expected to drop.”
China was projected to see the largest reduction in output, by around 7%, to 13.3M tonnes.
“At the same time, the USDA forecast puts the amount of rapeseed used in processing at 64.8M tonnes,” UFOP said. “This figure is down from the previous year, but continues to be large. As at the end of the marketing year, global ending stocks could amount to around 3.7M tonnes. This would translate to a 13-year low.