Global Market Outlook on Rapeseed Oil and Meal 

The global rapeseed seed market is expected to witness a short supply scenario during 2017–2018F. Despite a record harvest in Canada and Australia, heavy crop damage in the UK (major producing country in the EU) is likely to weigh on global supply .The EU is the major producer of rapeseed in the world. However, Canada leads the global exports contributing to more than 50 percent of the total exports, for both rapeseed oil and meal

rapeseed-oil-and-meal-market-size

  • The harvest period for summer varieties of rapeseed (largely grown in Canada) is between June last week and August, whereas for winter varieties (grown in the EU and parts of China), it is at the end of August–September 
  • Usually, contracts are for four months, and the best months to lock in the rapeseed oil prices are June and rapeseed meal is March/April

Rapeseed Oil and Meal - Value Chain

  • Rapeseed yields around 40 percent of oil, which makes it as one of the most important oilseed crops after soybean 
  • By-products, like rapeseed meal and lecithin, are also produced during the process 
  • Rapeseed meal is widely used as cattle fodder, whereas lecithin is used in the food and nutraceutical industries as additives

Rapeseed Oil - Global Supply–Demand Analysis

  • The major producers of soybean oil are the EU, China, and Canada, and they contribute to around 74 percent of the total world’s production 
  • Meanwhile, Australia and India have witnessed a record yield 
  • Crushing in Canada have witnessed a decrease since the exports are projected to decrease by 3.1 MMT

Global Production Share (2010–2011 and 2018–2019 F)

  • Rapeseed oil demand is expected to increase steadily to reach 29.15 MMT in 2017–2018, and it is expected to be around 28.92 in 2018–2019
  • Its demand is primarily driven by both food and industrial uses. Any major increase in demand for palm oil, which is used in biofuel, is also expected to impact the rapeseed oil. Likewise, price trends in other major vegetable oils are also expected to drive the demand 
  • Demand EU is estimated to be less, owing to anticipation in price rise, driven by reduced acreage

Rapeseed Oil - Trade Dynamics

  • Record yield and production increased the Canadian rapeseed exports in the harvest period of 2016–2017. This trend continued in 2017–2018, and it is likely to continue in 2018–2019

  • Rapeseed oil production is highly influenced by the crush margins vs. soybean in the EU