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Global Rapeseed Supply Takes Hit From EU Harvest at 14-Year Low

Global rapeseed supplies are taking a hit as the EU is seeing another terrible rapeseed harvest with forecasts from the USDA that output will sink to a 14-year low.

This means another year of imports for the EU at a time when Ukraine, its top supplier, is also having a difficult season due to adverse weather. Even with bumper crops in Canada and Australia, it won’t be enough to offset the declines that could see stockpiles fall to half of what they were just two years ago.

Limitations placed on the use of neonicotinoids in the EU combined with high demand for rapeseed for biodiesel production have turned the EU into the world’s top importer of the oilseed.

Australia’s crop, which has benefited from rains this season, will be needed to offset part of the EU’s demand. Meanwhile, Canada is expecting to see a bumper crop of canola, but since Canada’s crop is genetically modified, compared to 80 percent of Australia’s crop being non-GMO, the EU restricts its use for cooking oil.

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