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World canola (or rapeseed, the terms are interchangeable) production in the 1990’s increased about 40 percent, and canola is now the second largest oilseed in crop size. However, production is only about 25 percent that of soybeans. In 1999/2000, world production was forecast to be a record large 42.2 million metric tonnes vs. 36.6 million in 1998/99, and about 25.0 million in 1990. On a protein meal basis rapeseed has been the world’s second largest crop for some time. Production totaled a record large 22.8 million tonnes in 1999/00 vs. 19.6 million in 1998/99. On a vegetable oil basis rapeseed ranks third (after soybean and palm), with production of a record 13.9 million tonnes in 1999/00 vs. 12.1 million in 1998/99. For the seed and products 1999/00 production exceeded initial estimates. World rapeseed supplies in 1999/00 of 43.6 million tonnes compares with 37.4 million in 1998/99, which includes relatively small carryover stocks for both crop years. The world 1999/00 (July/June) crush of a record 37.9 million tonnes compares with the previous year’s record of 32.5 million tonnes. Collectively, the European Union (E.U.) is the largest producer with about 11 million tonnes in 1999/00 vs. 9.4 million in 1998/99, with Germany the largest producer within the E.U. China is the largest single producer: production in 1999/00 of 9.8 million tonnes compares with 8.3 million in 1998/99; Canada then follows with 8.3 million and 7.6 million, respectively. Although China continues to increase rapeseed acreage, average yield has failed to show much improvement and is at least 50 percent less than the yields realized in Western Europe. In terms of protein meal consumption, the European Union’s 1999/00 meal consumption of 5.6 million tonnes is about one-fifth that of soybean meal. However, E.U. estimated rapeseed oil usage in 1999/00 of 3.1 million tonnes is nearly twice that of soybean oil. For both products, 1999/00 usage is forecast at record highs. Foreign trade in rapeseed is second only to soybeans: exports of 8.1 million tonnes in 1999/00 compare with a record 8.3 million in 1998/99. U.S. production of canola seed is small in absolute terms, but percentagewise it is increasing rather quickly. The crop is grown mostly in the Northern Plains states. Production in 1999/00 (June/May) of 1.6 billion pounds was marginally below the record crop of 1998/99, but compares with crops of less than a 100 million pounds in the 1980’s. Acreage is also growing, almost doubling from year to year during the 1990’s. Contributing to the gains in U.S. production include: (1) government incentives to increase acreage; (2) development of better varieties that can be grown in the U.S.; and (3) the wider acceptance of canola oil in cooking due to its lower content of saturated fats. Canola oil is said to be 94 percent saturated fat free, the lowest of any leading oil. Demand for canola meal has also grown sharply as a livestock feed. U.S. canola oil production in 1999/00 (October/September) of a record large 669 million pounds compares with 556 million in 1998/99. The U.S. imports even more oil, 1.1 billion pounds in 1999/00. Domestic usage in 1999/00 of a record 1.4 billion pounds compares with 1.3 billion a year earlier, and about a half billion pounds at the start of the 1990’s. The U.S. is expected to export about 347 million pounds in 1999/00 vs. 295 in 1998/99 million, and virtually no yearly exports in the late 1980’s. U.S. canola meal production in 1999/00 of 528,000 short tons compares with 438,000 in 1998/99; imports totaled 1.4 millions tons vs. 1.3 million tons, respectively. Domestic usage of a record large 1.9 million tons compares with 1.7 million the year before. U.S. exports of canola meal are minimal, as are carryover stocks. The average price received by farmers for canola seed in 1999/00 was forecast to range between $8.10-8.90/cwt. vs. $9.10 a year earlier. Canola oil’s price was forecast at 18.75-21.25 cents per pound vs. 21.9 cents, respectively, while meal’s price of $100.00-125.00 per short ton in 1999/00 compares with $98.00 in 1998/99. Futures Markets Canola futures and options are traded on the Winnipeg Commodity Exchange (WCE) and quoted in Canadian dollars per ton. Rapeseed futures are traded on the Marche a Terme International de France (MATIF).

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Excerpted from the CRB Commodity Yearbook.