Global 2006/07 rapeseed supplies will be tight because of biofuel demand and Canada will be among export winners, Hamburg-based oilseeds analysts Oil World forecasts.
It estimates global 2006/07 rapeseed production at 47.80 million tonnes, below consumption of 50.0 million tonnes. This compares to 2005/06 production of 48.41 million tonnes and consumption of 47.77 million tonnes.
"The global outlook for 2006/07 points to a supply squeeze, as world demand for rapeseed and canola is going to exceed production," it said. "This will result in a decline of world stocks of rapeseed and canola towards the end of the new season."
Demand will be driven by further global demand for rapeoil/canola oil for biofuels, especially in the European Union, it said.
Canada is likely to benefit and its 2006/07 canola exports are forecast to rise to 5.70 million tonnes from 5.30 million tonnes in 2005/06.
The 2006/07 export figure includes 200,000 tonnes sold to the European Union, assuming the EU relaxes import restrictions on genetically-modified rapeseed.
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