EU imports of rapeseed have hit record levels this season as the continent tries to meet its import requirements. A difficult growing season for both the domestic and the European crop has left the continent requiring c.5.5Mt in imports, according to the EU commission.
Since 1 July, the EU has imported just over 2.04Mt of rapeseed by 6 Oct, according to the EU commission. This import volume is 92% higher than last year for the same period, making it the largest on record. EU exports of rapeseed have declined 78% over the same period.
Widespread pest damage and dry conditions last year, in conjunction with a reduced EU rapeseed planted area, resulted in a production figure of 16.93Mt. This is 20.6% lower than the five-year average. According to the EU commission balance sheet, rapeseed usage figures for the EU point towards 22.94Mt, meaning a deficit of 6.02Mt is required to be met from imports and carryover stocks. With over 2.0Mt brought in already, import demand sits around 3.5Mt for the remainder of the season.
A front-loaded rapeseed export schedule for Ukraine has seen their share of EU import origins at 80.7%.
Canadian origin import volumes into the EU have reached a record for July to October of over 290Kt so far, making up 14.2% of total imports. The wide price spread of nearby futures, averaging €72 (Matif vs. Winnipeg) since 1 July, has helped imports. However, end-uses for Canadian origin can be more challenging, given the GM traits of the rapeseed. A lack of GM markets for rapemeal and oil potentially limits the amount of Canadian supply that can be imported.