The group flagged a severe deterioration in the UK owing to detrimental weather conditions resulting in the abandonment of at least 200,000 hectares of winter rapeseed area.Rapeseed prices are expected to outperform soybean prices over the nest few months, a latest update from the Oil World states. The group downgraded prospects for the European Union harvest, and cutting to a forecast for the UK harvest, which met with skepticism when it was made last week.
The influential analysis group said that rapeseed supplies would be tighter than previously expected in 2013-14, thanks to the weakened harvest prospects in the EU, the top consumer of the oilseed.
Oil World cut to 19.8 million (m) tonnes its estimate for the EU harvest, from 20.2m tonnes a week ago, albeit still representing an increase from last year's 19.2m-tonne harvest.
The deteriorated rapeseed production prospects in the EU are likely to be a supportive element for rapeseed prices, which also may widen their premium over soybeans. The group warned about a severe deterioration in the UK owing to detrimental weather conditions resulting in the abandonment of at least 200,000 hectares of winter rapeseed area.
The influential analysis group said that rapeseed supplies would be tighter than previously expected in 2013-14, thanks to the weakened harvest prospects in the EU, the top consumer of the oilseed.
Oil World cut to 19.8 million (m) tonnes its estimate for the EU harvest, from 20.2m tonnes a week ago, albeit still representing an increase from last year's 19.2m-tonne harvest.
The deteriorated rapeseed production prospects in the EU are likely to be a supportive element for rapeseed prices, which also may widen their premium over soybeans. The group warned about a severe deterioration in the UK owing to detrimental weather conditions resulting in the abandonment of at least 200,000 hectares of winter rapeseed area.
Source by Commodity Insights
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