Russia: Rapeseed Oil Exports Gaining Momentum

 

he increase in rapeseed oil exports from the country continues for the sixth consecutive season, driven by China’s growing demand for the product. The need to expand rapeseed oil production in the Russian Federation is also influenced by the external market’s requirements due to insufficient canola harvest in Canada in the current marketing year.

 

Several factors contribute to the increase in seed processing volumes within the country. Russia is anticipating a record-high harvest of this product, and the export duty stands at 30%.

 

As a result, there is a possibility that the production and export of this product in the current marketing year will surpass all previous records. The forecast indicates a production volume of 853 thousand tons (+23% compared to the 20/21 season) and an export volume of 835 thousand tons (+12%).

 

The pace of export growth for this commodity from the country may be slowed down by the production of new canola crops in Australia, expected to start in December 2021.