IndexBox has just published a new report: ‘U.S. – Rape Or Colza Seed – Market Analysis, Forecast, Size, Trends and Insights‘. Here is a summary of the report’s key findings.

This year, the average rape seed price in the U.S. is forecast to pick up 74% y/y to a record $320 per tonne owing to reducing supply. Unfavourable weather in North Dakota adversely affected yields, decreasing the total rape seed output.

The average rape seed price in the U.S. is forecast to skyrocket from $184 per tonne in 2021 to a record $320 per tonne due to lower supply. Although the area under canola was expanded by 328K acres to 2.15M acres, poor weather in North Dakota led to yields reducing sharply last year. Dakota’s production accounts for 85% of total American rape output.

An expected decrease in rape imports to the U.S. will be another driver of the price growth. Much like in North Dakota, Canadian farmers saw poor yields and produced a record-low canola seed volume. This eventually will make Canada, which shapes 92% of U.S. rape seed imports, reduce exports to the country. Suppliers from Ukraine and the EU will likely expand their canola shipments to the U.S., filling the gap after reduced availability in North America.

U.S. Rape and Colza Seed Imports

In 2020, the amount of rape or colza seed imported into the U.S. expanded rapidly to 567K tonnes, with an increase of 12% compared with the year before. In value terms, supplies rose to $254M (IndexBox estimates).

Canada (524K tonnes) was the leading supplier of rape and colza seed to the U.S., with a 92% share of total imports. Moreover, rape and colza seed imports from Canada exceeded the figures recorded by the second-largest supplier, Argentina (25K tonnes), more than tenfold.

In value terms, Canada ($226M) constituted the most significant rape and colza seed supplier to the U.S., comprising 89% of total imports. The second position in the ranking was occupied by Argentina ($13M), with a 5.3% share of total imports.

Top Rape and Colza Seed Suppliers Worldwide

Global exports of rape or colza seeds amounted to 25M tonnes in 2020.In value terms, supplies totaled $11.1B.

Canada was the largest exporter of rape or colza seed globally, with the volume of supplies recording 12M tonnes, which was approx. 47% of total exports in 2020. Ukraine (2.4M tonnes) took a 9.5% share (based on tonnes) of total exports, which put it in second place, followed by the Netherlands (7.8%) and Australia (6.7%). France (1,060K tonnes), Belgium (946K tonnes), Hungary (714K tonnes), Lithuania (675K tonnes), Russia (647K tonnes), Romania (542K tonnes), Latvia (501K tonnes) and Poland (410K tonnes) took a little share of total exports.

In value terms, Canada ($4.7B) remains the most significant rape and colza seed supplier worldwide, comprising 42% of global supplies. The second position in the ranking was occupied by Ukraine ($1B), with a 9.1% share of total exports. It was followed by the Netherlands, with a 7.9% share.

Source: IndexBox Platform