APK-Inform Agency reduced the forecast of rapeseed production in Ukraine in 2020/21 MY from 3.1 mln tonnes previously to 2.7 mln tonnes, which is also 19% lower than the record crop in 2019/20 MY (3.3 mln tonnes). The downward revision was performed due to the lower areas (-13%) and yield (-6%) of the oilseed.
Owing to the deterioration of rapeseed production in Ukraine this year, the export potential in 2020/21 MY was also revised down from 2.7 to 2.5 mln tonnes (-14% year-on-year).
“Despite the low July export, the import demand on Ukrainian rapeseed in a near-term perspective will be high, especially from German, UK, Belgium, France, etc. The decrease of rapeseed harvest in the European countries in 2020 to the lowest in more than a decade will maintain the deficit of the oilseed on this market and high import demand in 2020/21 MY” – reported Julia Ivanitskaya, analyst of APK-Inform Agency.
The decline of rapeseed production and the lack of high quality goods in terms of the active demand will support the bid prices for rapeseed.