PARIS – June 28, 2021

Consultancy Strategie Grains has raised its forecast for this year’s European Union rapeseed harvest while trimming demand expectations, projecting reduced supply tightness next season.
Rapeseed production in the 27-country EU, indeed, is now expected to reach 17 million tonnes, compared with the 16.82 million tonnes forecast a month ago.
This is 3.3% above last year’s crop.
The upward revision was mainly because of Romanian output, the consultancy said.
A sharp fall in global vegetableoil prices between mid-May and mid-June cut margins for crushing oilseeds, including rapeseed, reducing demand prospects for the coming 2021/22 season.
Thus its expect a recovery of rapeseed and sunseed stocks in the EU between the beginning and end of 2021/22 marketing year.
Meantime, the consultancy made a slight cut to its forecast for EU sunseed output this year to 9.82 million tonnes from 9.88 million tonnes, but that would still be 13.2% above 2020’s drought-affected crop.
Consequentially, european rapeseed prices are expected to ease from current high levels in the run-up to harvesting.
However, price trends will depend on yield results in Europe, prospects for Canadian canola and U.S. soybeans, as well as crudeoil fluctuations that influence biofuel markets.
Sourced by Reuters