European rapeseed quotation reaches new heights

The rapeseed harvest this season is estimated by the European Commission at 16,9 million tons. That is higher than the 16,2 million and 15,4 million tons in 2020 and 2019 but still 3,2% below the five-year average of 17,5 million tons. The average yield is estimated at 3,18 tons per hectare, which is 3,6% above the five-year average.

The relatively good harvest could provide some relief to the market. However, that is not what happens. The rapeseed quotation on the Matif has passed the peak of €681,25 per tonne on April 29 and was even trading at €20 per tonne last Wednesday, October 698,25th. The price has now fallen slightly again, but remains historically high with the closing price of €692,75 per tonne yesterday (Tuesday, October 26). Over the past ten years, the price has usually hovered around or well below €400 per tonne.

Depending on import
The cause of the relatively high rapeseed prices lies in the availability on the world market. The harvest in Canada, the largest producer, was disappointing last season. Although Europe has harvested more rapeseed, the EU needs to import 5,7 million tonnes to meet demand, according to the Commission.

Ukraine is the most important supplier for the EU, but that country is reluctant to export despite the higher harvest there. The country wants to prevent gaps in the availability of rapeseed towards the season. From the start of the season on July 1 to October 24, the EU imported more than 1 million tons of rapeseed from Ukraine. That is approximately 37% less than in the same period last year. The EU is trying to compensate for this by importing more rapeseed from Australia. The EU has only succeeded in this to a limited extent. Total imports remain approximately 43% behind imports in the same period last year.