PARIS: Strategie Grains has slightly reduced its monthly forecast for this year's European Union rapeseed harvest, to 16.93 million tonnes from 17.03 million, it said in an oilseed report. The latest estimate would be 1.9% above 2020 output of 16.61 million tonnes, the French consultancy said.
Harvest results were disappointing in central and northern EU countries, as well as in Germany, but better than expected in France, it said. Rapeseed is the most produced oilseed in the EU and used for edible oil, animal feed and biodiesel fuel.
Strategie Grains reiterated its expectation that EU rapeseed supply would remain tight and prices high this season. Despite the slight recovery in EU production, stocks by the end of the 2021/22 season are seen easing further from an already low level in 2020/21 as imports from drought-hit Canada tail off and attractive margins for vegetable oils underpin crushing demand, Strategie Grains said.
EU rapeseed prices are expected on average to be higher than last season. But they have downward potential of 30-40 euros per tonne compared with current levels due to likely supply pressure from upcoming harvests of sunflower seed in Europe and the Black Sea region as well as soybeans in the United States, it said. The consultancy also trimmed its forecast for the EU's sunseed harvest, to 9.63 million tonnes from 9.74 million last month. That would nonetheless be 10.6% above last year's crop.