Demand for Ukrainian rapeseed of the next harvest is growing in the EU

Ukraine is running out of stocks of the old rapeseed harvest, and there is almost no trade. However, European countries are showing increasing interest in the new harvest of the Ukrainian oilseed. This was discussed on March 5 during the analytical briefing of the PUSK cooperative, established within the VAR (Vseukrainska Agrarna Rada – All-Ukrainian Agrarian Council).

“As of March 5, the stocks of old-crop rapeseed in Ukraine amounted to about 126 thsd tonnes, i.e. the oilseed is actually sold out. Indicatively, the prices for last year’s rapeseed in Ukrainian seaports are at the level of: 15500-16000 UAH/t on CPT terms, in Constanta CPT – $375-385,” the company said.

However, the interest of the European buyers to the Ukrainian rapeseed of 2024 harvest is growing.

“The EU countries are expected to reduce the production of rapeseed in the new season. Due to heavy precipitation in the fall, many farmers failed to sow the crop in time. The drop in the European oilseed harvest may reach 12%. European processors risk a shortage of raw materials, so there is already demand for the future harvest of Ukrainian oilseeds for delivery in August-September 2024. The prices on DAP Germany are offered at 405-415 euros per ton,” the analysts said.

The prices for Ukrainian rapeseed forwards may increase even more in the coming months.

“In March-April, prices for forward rapeseed contracts tend to rise.

In these months, we receive updated information on the winterized areas of winter rapeseed and adjust the harvest forecasts.That is, prices for oilseed forwards in March-April may rise by another 20-30 euros per ton, which may encourage Ukrainian producers to conclude contracts with European buyers for the next harvest,” summarizes the PUSK.

Tags: rapeseed, Ukraine, EU