Low Rapeseed Price Expected Next Year

By CnAgri2012-12-26 10:24:50 Print     According to the Ministry of Agriculture, China’s planted rapeseed acreage in the fall of 2012 increased 120,000 hectares on the year-on-year basis. Considering better rapeseed supply in 2013, BOABC presumes that the protective rapeseed procurement price may be below RMB5,000/MT next year.
 
    Rapeseed procurement price was RMB5,200/MT in mid December and the producer’s rapeseed oil price was RMB10,700/MT. Crushers suffered a loss of RMB300/MT. As soyoil and palm oil price is below rapeseed oil price, there is little room for rapeseed oil price to move up. To avoid losses, crushers may have to force down procurement price.
 
    World rapeseed production is predicted to hit a record high of RMB65.9 million MT in 2013/2014, an increase of 5.7 million MT over the previous year. This may result in a rapeseed price decline next year. Cheap rapeseed price in the international market may spur China’s purchase. In turn, domestic rapeseed price may be squeezed.

From “China Oil and Oilseeds Market Weekly Report”