USDA downgrades rapeseed production in 2009 / 10

Canada's rapeseed production figures for 2009/10 have been revised down by 500,000 tonnes to 10 million tonnes due to lower yields, according to the latest oilseed outlook released by the US Department of Agriculture.

The USDA says the rapeseed harvest is now complete, but wet weather has delayed harvests in northern areas. As of Oct. 26, Manitoba's harvest was 50 to 57 percent complete. Recent rain and snow means most of the rapeseed crop won't be harvested until 2010.

Despite the downward revision of Canadian rapeseed production data, ending stocks for 2009/10 are likely to be slightly higher than earlier forecasts, at 1.4 million tons, due to weak demand.

Canadian rapeseed exports for 2009/10 are projected to be 5.8 million tons, down by 0.3 million tons, mainly due to stringent testing by the Chinese government this month for rapeseed stem rot. China accounted for 36.5 per cent of Canada's rapeseed exports in 2008/09.

However, USDA said Canadian rapeseed processing demand may not be affected because domestic processors can tap into sufficient stocks.

Canada's domestic rapeseed consumption also faces serious challenges. The Canadian dollar has steadily strengthened and salmonella concerns in rapeseed meal have depressed processing profits. The Food and Drug Administration has banned shipments of Canadian rapeseed meal from entering the United States because U.S. officials found salmonella on the cargo. In addition, the U.S. Food and Drug Administration has restricted imports of rapeseed meal from Canada's four major processing plants.