Low forecast of 2016 EU oilseed crop supports prices

Whereas an increase is expected in soybeans and sunflowers, the rapeseed harvest could dip further. This situation supports prices. The EU-28 member states are estimated to harvest 31.6 million tonnes of oilseeds in 2016, approximately 200,000 tonnes more than a year earlier. According to Agrarmarkt Informations-Gesellschaft (mbH), the rise is accounted for by a growth in sunflower and soybean output. In other words, the sunflower harvest is expected to increase by around 8.1 million tonnes (approximately 4 per cent) based on a slight expansion of sunflower area. Soy production could increase by 13 per cent, to a record peak of 2.3 million tonnes. By contrast, EU rapeseed production is expected to drop. The European oilseed associations Copa/Cogeca and Coceral peg the decline at an estimated 400,000 tonnes, to 21.2 million tonnes. The associations put the slide down to the slight reduction in rapeseed area. Yields by hectare could exceed the the long-term mean.