Bulgaria’s 2026/27 rapeseed market: farmers margins vs. those of crushers

UkrAgroConsult

Article author:

Tetyana Shevel

Grain and oilseed market analyst

The record 2026 crop of more than 620 K mt should create a positive result for both farmers and processors. The crop provides processors with a larger domestic raw material supply and reduces the need to depend on expensive or unreliable imports. At the same time, strong competition between domestic crushers and exporters should support farmgate prices.

However, the distribution of the margin between crushers and farmers will depend on RSO price, the operating margin of biodiesel plants and the intensity of competition for available RPS.

Why processors can benefit

• The conflict around the Strait of Hormuz supported oil prices and raised the cost of fuel.
• Higher fossil-fuel prices can improve the relative economics of biodiesel and support demand for vegetable-oil stocks, including RSO.
• Production problems in several European RPS-growing countries are also limiting the EU’s ability to produce RSO for biodiesel.
• Restricted deliveries of Ukrainian RPS and RSO to the EU provide additional support. Ukrainian supply has traditionally helped cover raw material and vegetable-oil deficits in parts of Europe. Any disruption to Black Sea ports, the Danube or western railway corridors raises delivery costs and increases the value of locally available Bulgarian seed.

A record crop does not guarantee a record processing margin. Crushers still need a positive spread between the cost of RPS and the combined value of RSO, meal and biodiesel.

Positive factors for farming sector

• Uncertainties in the international logistics and higher freight costs make domestically produced RPS more attractive to Bulgarian buyers.
• Crop problems in neighbouring European countries also increase the potential to sell RPS into both domestic and export markets at more attractive prices.
• Competition between processors and exporters is therefore the central bullish factor for farmers in 2026/27.

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Tags: Hormuz, Bulgaria, EU, prices, rapeseed, biodiesel, imports, logistics, edible oils, rapeseed oil