Rapeseed prices in Ukraine have risen somewhat, but are inferior to last year

In Ukraine, the formation of purchase prices for rapeseed continues, which in the current season remain under the pressure of low demand in ports and logistical difficulties with delivery through the western borders to the EU.

Following the global stock exchanges, rapeseed purchase prices rose slightly during the week, but further growth is limited by increased supply and lack of demand in the Black Sea ports.

Harvesting of winter rape in Ukraine is coming to an end, but it is being delayed by rains in the western and northern regions. According to forecasts, 2.8-3 million tons of rapeseed will be harvested this year, which will exceed last year’s harvest by 10-15%.

During the week, rapeseed prices in the Danube ports rose to $440-450/t, and at DAP Poland, Romania – to $580-620/t. The purchase prices for rapeseed at the French elevators remain within the range of UAH 11,500-14,000/t, depending on the regions, but in the western regions, an increase in demand was recorded at the French farms with delivery to the EU.

Processors in the western regions offer UAH 14,000-15,500/t with delivery to the plant, but note that due to difficulties with the sale of meal, the amount of processing will be insignificant.

After strong gains last week, canola and canola prices fell this week under pressure from increased supply in the EU and good weather in Canada to support a bumper crop.

August rapeseed futures on the Paris MATIF rose by 15.5 €/t to 648.5 €/t or $664/t yesterday, but in general fell by 6.4% for the week against the background of increased offers of the new crop.

November canola futures rose 2.6% yesterday to CAD 844/t, or $655/t, but are down 5.9% since the start of the week.

The removal from the ports of Odesa and Chornomorsk of the ships that have remained there since the beginning of the war, as well as the introduction of a vessel for loading for the first time during the entire period of aggression, will in the long run normalize the operation of the ports, and within one or two months will increase the demand for the delivery of goods to the ports of the Black Sea. This will allow traders to resume purchases at the ports and speed up deliveries and receipt of payments by farmers, although it will not increase prices due to high freight and insurance costs.

Tags: Ukraine, prices, rapeseed