Rapeseed prices have improved again this week as confirmation of disappointing yields in Europe have continued. Most commentators are still putting the EU crop at 17.5 million tonnes which will be at least 2 million tonnes less than the 2018 harvest.
There is a continuing theme that oil levels are lower than last season, which will require more rapeseed to be crushed to produce the same previous amount of oil. EU OSR imports are likely to have to increase close to 6 million tonnes, which include a large amount of GM canola from Canada. How crushers manage the logistics of coping with GM seed and selling the products is likely to prove a challenge, but current large price spreads between Winnipeg canola and Matif OSR will no doubt allow some opportunities.
Regards,
Owen
