Strategie Grains cuts EU 2019 rapeseed crop forecast to 12-year low

PARIS: Strategie Grains has lowered its forecast for the 2019 European Union rapeseed harvest to its lowest in about 12 years to reflect downward revisions in France and Hungary where crops have suffered from dry weather.

The France-based consultancy in its monthly oilseed report said it expected an EU 2019 rapeseed production of 18.85 million tonnes, down from an estimate of 19.32 million a month ago and 5.7 percent smaller than the 2018 crop.

"The moisture balance is getting increasingly low throughout the EU despite the situation improving somewhat in the south-eastern countries," Strategie Grains said in its report.

This month's reduction was mainly due to a cut in its production estimates for Romania, Hungary and France. Output was revised up slightly in Britain and Slovakia.

In France, crops are in relatively good condition after a mild winter, but there is strong parasite pressure and the lack of water is beginning to be felt, the analyst said.

"Those conditions along with recent frost events are penalising the bloom season," it said.

Rapeseed is mainly used to produce cooking oil, biodiesel and animal feed.

Strategie Grains said the uncertainty on the final size of the harvest would have a major impact on prices, forecasting that EU rapeseed prices should remain well above world prices throughout the season.