Rapeseed rises in price due to high demand for vegetable oils

Ukraine’s rapeseed exports have already reached almost 200,000 tons this year. Delays in shipments in October did not affect the overall trends, and in early November, export volumes increased due to the fulfillment of deferred contracts. This was reported by analysts of the agricultural cooperative PUSK, established within the VAR.

“October shipments had some difficulties with logistics, but now this cargo is being actively shipped under contracts. This stimulated a significant increase in rapeseed exports. The increased demand combined with the settlement of shipments contribute to the positive dynamics, and we hope that the current export trend will continue,” the company said.

Another key factor driving the rapeseed market is the high global demand for vegetable oils. Despite the market correction observed in early fall, rapeseed prices on the European EuroNext market reached 540 euros per ton, and in the future may reach higher levels. DB “Prices for vegetable oils are constantly growing, which also entails the cost of raw materials, including rapeseed. In the coming months, we expect the price of rapeseed to rise further to 550-560 euros per tonne on EuroNext, and according to some estimates, even to 600 euros. This is good news for Ukrainian producers, as the storage of stocks may pay off against the background of such growth,” the experts believe.

On the Ukrainian CPT market, the prices for rapeseed are currently ranging between 525-528 USD/t, however, given the dynamics, it is expected that they can overcome the level of 530 USD/t. This stability, combined with the high demand for vegetable oils, supports the interest of traders in rapeseed.

“As of November 1, the stocks of rapeseed amounted to about 1.2 mln tonnes, which is enough for active trade. However, the main demand for rapeseed is likely to last until December-January. Major traders are determined to maintain their programs until the end of the year, and this, in turn, will support the price dynamics, which may give another $30-40 per ton in the first half of 2025.”

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Tags: edible oils, Ukraine, prices, rapeseed