Rapeseed in Ukraine may rise in price to $620–640/t

The steady growth of the rapeseed market in the world creates positive signals and new prospects for producers from Ukraine. This is reported by the analytical department of the agricultural cooperative PUSK, established within the framework of the All-Ukrainian Agrarian Council (VAR).

“Quotations on the Euronext exchange last week were fixed above the psychological level of 500 €/t, which is considered an important technical signal for further upward movement. An additional supporting factor is the situation on the oil market. The growth of oil prices, caused by geopolitical tensions in the Middle East and restrictions in the Strait of Hormuz area, stimulates an increase in the cost of the entire oilseed complex, including rapeseed. In the coming months — from May to July — it is possible to reach levels of 540–550 €/t,” — analysts note.

The current market situation does not contribute to the active conclusion of forward contracts. Historically, the spot market has often offered more favorable price levels than forwards, especially in an uptrend.

“Last week, demand for forward deliveries of Ukrainian rapeseed was formed at the level of $570–575/t, reaching $580/t in some places. However, given the potential for further growth, it is advisable for producers to refrain from active sales for at least the next one or two weeks. On the Ukrainian market, the spot price for rapeseed may reach $620–640/t in July-September,” the PUSK believes.

Tags: prices, rapeseed, Ukraine