Strategie Grains: EU on track for larger oilseed crop in this year

Strategie Grains, which kept its monthly harvest predictions almost the same on Friday, said that the European Union remains on track to see a recovery in oilseed production for this year due to the favorable conditions of rapeseed crops.

The consultancy forecasted rapeseed production in 2025/26 at 19,0 million metric tonnes, an increase of 13% over 2024/25.

The projected sunflower seed production was increased to 10.5 millions tons, up from 10.4million a month earlier. This is still 25% more than the previous crop. The expected soybean production remained at 3.2 millions tons, nearly 7 percent higher than the previous crop.

In an oilseed report by Strategie Grains, the company said that "growing conditions for rapeseed in the EU have been good in general over the last month." It added that the rainfall deficit in the eastern EU would need to be closely monitored.

Rapeseed, which is mainly sown during the late summer and fall in Europe, is emerging from winter. In the spring, sunflower and soybeans are planted.

Last year, severe weather conditions including torrential rainfall and heatwaves damaged EU oilseed crops and caused a shortage of rapeseed & sunflower seeds.

Strategie Grains stated that "as a consequence, we expect further upward potential in the price of both seeds at the end of the 2024/25 marketing year."

It added that improved harvests are expected to increase availability, especially in sunflower seed. However, low oil and seed stocks will limit the recovery of rapeseed supply.

(source: Reuters)