A more positive sound is noticeable in the cultivation of rapeseed in Europe. That is what the European Commission and the market bureau Strategie Grains expect. The acreage is currently under strong pressure, but it is expected that a little more of the yellow gold will have been sown this summer.
The low prices and problems with cultivation have caused arable farmers in Europe to reduce their cultivation of rapeseed. In the period between 2018 and 2019, the area in the EU-28 decreased by as much as 1,43 million hectares, according to figures from the European Commission. The area of 5,5 million hectares (crop year 2019) was the lowest point since 2006.
Small rapeseed crop
This also resulted in a significant drop in yields. Partly due to the drought, after sowing the 2019 harvest, many plots had to be abandoned. The final volume of rapeseed in the European Union therefore amounts to 16,93 million tons. This is the lowest level in 13 years.
One of the biggest problems rapeseed growers face is the lack of seed coating with neonicotinoids. While beekeepers previously expressed concern about the use of the insecticide, which could be harmful to bees, the opposite is now true. Rapeseed plots are popular for releasing bee colonies. A significant area reduction makes this difficult.
Grain switchers
The reason for an increase in rapeseed acreage is twofold. On the one hand, wheat prices are not at a high level. The alternatives are therefore considered earlier. The price level of rapeseed certainly helps. The November contract on the Matif in Paris rose to €387 per tonne at the beginning of October. The highest level in 1 year.
With the average European yield of 3,25 tons per hectare, the balance is €1.257. It is therefore comparable to that of wheat. This high price level is reported to continue in the coming period. Canada, one of the largest producers and exporters, is also facing poor harvests and difficulties getting their product to the Chinese market.
Estimate for 2020 harvest
The French market agency Strategy Grains estimates that rapeseed cultivation will increase by 2020 hectares in the 440.000 harvest year. The level therefore remains 8% below the 5-year average. In theory, this means a yield of 19,3 million tons. That remains the lowest level in 7 years.
The area is estimated to be increasing, particularly in France, Germany, Great Britain and Romania. In Eastern Europe and Denmark it is actually decreasing. France is the largest rapeseed producer in the European Union. The dry month of September has meant that rapeseed has not developed well everywhere. This is also the case regionally in Germany.