July 31 (Bloomberg) -- European Union rapeseed production will be higher than previously forecast after expectations were raised for Germany and amid favorable harvest results in France, industry researcher Oil World said.
The EU rapeseed crop is expected to be 19 million metric tons, 800,000 tons more than a previous forecast and down from 19.2 million tons harvested in 2011, the Hamburg-based researcher wrote in an e-mailed report today.
Rapeseed futures in Paris have climbed 17 percent in the past 12 months in the wake of higher prices for soybeans, which have jumped 22 percent in Chicago in the same period on concern a U.S. drought will hurt production.
“Rapeseed prices in Europe were recently torn between the bullishness emanating from the soybean complex and the supply and demand fundamentals of the rapeseed complex,” Oil World wrote. “In general, the crop outlook has brightened in Western and Eastern Europe.”
German farmers are expected to harvest 4.9 million to 5 million tons of rapeseed, with about 20 percent to 25 percent of the area harvested, Oil World wrote.
“The crop benefited from ample rainfall in May and June, which raised the kernel size and weight,” the researcher said. “The recent change toward warmer and drier weather is promoting the maturation and speeds up the harvest progress.”
The rapeseed harvest in France may be 5.4 million to 5.5 million tons from 5.37 million tons last year, Oil World said.
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