EU Rapeseed Imports to Rise as Output Falls to a Four-Year Low

Rapeseed production in the European Union will fall 8.9 percent to a four-year low as German output declines, boosting the need for imports into the bloc, Hamburg- based researcher Oil World said in a report.

EU output will fall to 18.7 million metric tons in the marketing year that started on July 1, down from 20.5 million tons the prior 12 months, according to the report, released yesterday. Imports from April through June rose to a record 917,000 tons, up from 272,000 during the same period a year earlier, Oil World said.

“The European Union is becoming more dependent on imports owing to insufficient domestic production,” the researcher said. “This week we have made another downward revision of this year’s EU-27 rapeseed crop. In fact, it cannot be excluded that actual production even drops to or below 18.5 million tons.”

Rapeseed futures on NYSE Liffe in Paris gained 0.2 percent to 444.50 euros ($609) today. The price is up 5.5 percent in the past month on lower production caused by dry weather through June.

Production in Germany, last year’s biggest EU producer, may fall 28 percent to 4.1 million tons through June, Oil World said. Polish output may fall 18 percent, according to the report. EU imports for the marketing year may rise 21 percent, the researcher said. Stockpiles on June 30 will total 1.07 million tons, down 25 percent, Oil World data show.

Australia shipped 1.1 million tons to the EU in the year through June, up from 314,000 tons. The bloc also imported 216,000 tons from Canada, up from 95,000 tons the prior year, according to the report.

To contact the reporter on this story: Tony C. Dreibus in London at tdreibus@bloomberg.net.

To contact the editor responsible for this story: John Deane at jdeane3@bloomberg.net