Rapeseed production is projected to rebound by 59%, sunflower production by 29%, and soybean production by 36%.
Oilseed exports are poised to jump 43% in MY 2021/22, after last year’s 24%t decline due to drought conditions, according to a USDA GAIN report.
“Robust demand for oilseeds in other EU markets will pull about 90% of Romania’s exportable stocks.”
Among Romania’s area for oilseeds, sunflower accounts for the largest share, followed by rapeseed, and soybeans. In fact, Romania is the largest sunflower producer in the EU, said the USDA.
“Following the dry 2020 autumn, abundant winter and spring rainfall boosted soil moisture levels across Romania’s major agricultural areas, which were severely affected by last year’s drought. The mild winter provided favorable conditions for the rapeseed crop, while replenished soil moisture levels ensured good starts for the sunflower and soybean crops,” noted the report.
In spite of the challenging weather conditions, rapeseed yields did not dramatically drop in MY 2020/21, reported the US agency. Yields were just 11% below that of the previous year.
“Romania’s rapeseed production reached 725,000 MT in MY 2020/21. The seven-month trade data shows that strong export demand resulted in 46 percent higher exports, mostly to other EU markets with large crushing capacities, including the Netherlands (202,000 MT), the Czech Republic (94,000 MT), Germany (93,000 MT), and Belgium (71,000 MT).”
Soybeans account for the lowest share of oilseed production in Romania. Cultivation is limited to areas with favorable conditions and/or with access to irrigation.
Though the USDA sees the MY 2021/22 soybean area slightly expanding, driven by favorable market prices and consistent subsidy eligibility.
“Based on planting conditions, yields are expected at 3.6% above the five-year average and total production is expected to reach 380,000 MT.”
Soybean imports, mainly sourced from Brazil and the US, are forecast to decline by 7% under the prospects of higher domestic production and stocks. Soybean exports from Romania, meanwhile, are predicted to jump by 28%, equally distributed between EU and non-EU markets.