Analysis: German drought threat to biodiesel producers

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http://www.reuters.com/article/2011/05/27/us-germany-rapeseed-idUSTRE74Q24020110527

Reuters) - Drought will sharply cut the rapeseed harvest in Germany, which produces about a quarter of the European Union's crop, and is likely to force biodiesel producers to cut output.

About 75 percent of Germany's rapeseed is used by its biodiesel industry, the largest in the EU.

"The biodiesel producers must seek to find alternative supplies or may face the prospect of cutting their production," said Claus Keller of German commodity analysts FO Licht.

Drought in the past four weeks has caused huge damage to Germany's 2011 rapeseed crop which may slump 22.6 percent or 1.3 million tonnes on the year to 4.4 million tonnes.