USDA raises EU rapeseed production data for 2009 / 10

According to the latest oil outlook report released by the United States Department of Agriculture, the rapeseed production forecast of the 27 countries of the European Union in 2009 was raised by 600000 tons to 21.2 million tons.

The increase in rapeseed production in the European Union will increase domestic consumption, according to the U.S. Department of Agriculture. The EU rapeseed processing volume in 2009 is expected to be 21.7 million tons, an increase of 7% over the previous year and an increase of 400000 tons over last month's forecast.

Even so, EU rapeseed inventory in 2009 will hit an all-time high of 2 million tonnes in 2010, which will depress rapeseed prices.

EU rapeseed processing profits have begun to improve in recent months, and from January 2010, some member states will begin to implement biofuel blending policies, which will further boost rapeseed oil consumption.

However, the large amount of cheap biofuels imported from Argentina and the United States restricts the use of rapeseed oil in the EU biofuel industry.