Rapeseed prices in Ukraine have risen somewhat, but demand for it remains low

International traders are very slowly resuming purchasing activities in Ukraine, and so far almost the only crop they are interested in is rapeseed.

The dispatch of 12 ships that remained blocked in the Black Sea ports of Ukraine since the beginning of the war, and the loading of only one ship, indicates the slow pace of recovery of supplies, especially in view of the port terminals loaded with corn of the old harvest, which also need to be freed.

Following the rise in the prices of oilseeds on world exchanges, the purchase prices for rapeseed in Ukraine rose from 13,000-13,500 hryvnias/t to 13,500-14,500 hryvnias/t at free-elevators. Some traders began to buy rapeseed with delivery to the port of Odesa and Chornomorsk at a price of UAH 15,000-15,500/t.

Rape and canola quotes rose this week in line with soybean prices, but in the near future they may fall under the pressure of increased offers from Ukraine, the EU and Canada.

November rapeseed futures on the Paris MATIF rose by €7/t to €660.25/t or $674.3/t from Monday, returning to the previous week’s level.

November canola futures were up just CAD 5/t for the week to CAD 854.5/t or $663/t, down CAD 10/t for the month amid favorable weather for crop formation. It is unlikely that quotations will be able to resume growth and return to the April level of 1100 CAD/t.

Demand prices for rape with delivery to DAP Poland, Romania remain at the level of $580-620/t, but subject to mandatory ISCC certification. At the same time, when forming the purchase price, buyers increased the discount relative to the price of MATIF to 50-60 €/t, while a few weeks ago it was 20-30 €/t.

In Europe, an increase in the supply of domestic rapeseed and that supplied from Ukraine will soon lead to a decrease in demand and an adjustment of prices on exchanges and the physical market.

Tags: Ukraine, prices, rapeseed