European Union rapeseed production will increase less than previously expected after U.K. farmers abandoned at least 200,000 hectares (494,200 acres) of the oilseed due to “severe crop deterioration,” Oil World said.
The EU rapeseed crop is expected to be 19.8 million metric tons, 500,000 tons more than last year and 400,000 tons below a previous estimate, the Hamburg, Germany-based oilseed industry researcher wrote in a report today.
Detrimental weather meant U.K. farmers will replant part of the winter rapeseed area with lower-yielding spring varieties or spring barley, according to Oil World. EU output this year will “considerably” trail 20.6 million tons harvested in 2010 and 21.7 million tons in 2009, it said.
“Supplies of rapeseed will be tighter than previously expected,” Oil World wrote. “The deteriorated rapeseed- production prospects in the EU are likely to be a supportive element for rapeseed prices, which may widen their premium over soybeans.”
U.K. output of the oilseed may be 1.8 million to 1.9 million tons compared with 2.56 million tons in 2012, Oil World said. France’s crop may fall to 5.2 million tons from 5.48 million tons due to an area decline of about 100,000 hectares.
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