Strategie Grains cuts EU rapeseed crop forecast to 16.7 mln T
01.06.2020 (Successful Farming) - PARIS, June 1 (Reuters) - Consultancy Strategie Grains has further reduced its forecast for this year's European Union rapeseed harvest, pegging the crop at 16.68 million tonnes compared with 17.02 million estimated a month ago.
The downward revision, the fifth consecutive monthly cut to Strategie Grains' EU rapeseed crop forecast, put the projected harvest below last year's poor crop of 16.92 million tonnes and would mark a new low since 2006.
"A further drop in the rapeseed acreage and unfavourable weather conditions should lead to a harvest below 17 million tonnes this year," it said in an oilseed report.
European rapeseed crops have been affected by drought, torrential rain and frosts during the growing season, while also suffering from insect damage.
Strategie Grains' EU forecasts continue to include Britain pending the negotiation of a new trade relationship following Britain's withdrawal from the bloc.
The European Commission last week reduced its monthly forecast for 2020/21 rapeseed production on an EU-27 basis not including Britain to 15.62 million tonnes, slightly above last year's equivalent EU-27 crop of 15.25 million.
Strategie Grains said it continued to expect an EU rapeseed supply deficit in the upcoming 2020/21 season, as an increase to projected imports to a record 6 million tonnes would not be enough to compensate for the weak expected harvest production.
It also reiterated that more ample rapeseed supply in Canada and large soybean stocks, partly due to weaker projected demand for livestock feed in the light of the novel coronavirus crisis, should cap EU rapeseed prices.
For the current 2019/20 season that ends on June 30, Strategie Grains also maintained its expectation of a supply deficit in view of last summer's poor harvest and strong crushing activity prior to the coronavirus epidemic that hurt late-season demand for biodiesel fuel made with rapeseed oil.
(Reporting by Gus Trompiz, editing by Louise Heavens)