Tight supply will increase new acreage in 2021

Despite a growing acreage in 2021 the supply with Canola will remain tight, because of high international demand. Based on first forecasts by the market experts from the ministry of agriculture in Ottawa harvest acreage is expected to grow on a level of 8,7 Mill. hectares (+ 3 % vs. 2020). The production will follow by a plus of 6 % up to 19,9 Mill. tons, 3rd highest production after records in 2018 & 2019. While high productions in that time lead to limited commodity prices (326 €/t), we see a changed market environment because of intensive demand from global market. Consequence is an average price for the current marketing year of around 408 €/t. The current export is mainly pushed by China and European Union on a new level of close to 11 Mill. tons (+ 7 % vs. last year). Because of historical low stocks of just 1,2 Mill. tons by mid of 2021, further limited exports for the coming year are already expected.