China’s rapeseed consumption on a sharp increase

In Germany, UFOP reports that world rapeseed stocks are likely to dwindle more strongly than previously expected in the 2017/18 marketing year, yet China’s figures have been unexpectedly adjusted. In its February forecast of the global rapeseed market, the USDA left figures for most market parameters unchanged. Global rapeseed production was seen at just less than 73.1 million tons. This would be up around 2.6 per cent from the previous year.

However, global rapeseed consumption was expected to rise to 72.47 million tons in the 2017/18 marketing year. Consequently, it would exceed the previous year’s level. According to Agrarmarkt Informations-Gesellschaft mbH (AMI), it is quite remarkable that Chinese demand was retrospectively estimated significantly higher. USDA raised the country’s consumption in 2016/17 by 6 per cent to 18.7 million tons. For the current marketing year, Chinese consumption was projected at 18.1 million tons, which would be a 3.2 per cent drop from 2016/17. Global rapeseed ending stocks in 2017/18 were seen to rise to 5.7 million tons due to an increase in global production.