Ukrainian crushers find it increasingly difficult to compete with the European market for rapeseed

Competition between Ukrainian crushers and the European export market for rapeseed is intensifying. According to Spike Brokers, rapeseed prices on an FCA Chop basis increased by $5 over the week to $550/t, while prices offered by domestic crushers fell by $15 to $485/t. As a result, the premium at Ukraine’s western border over domestic processing prices widened to $65/t.

The export market is being supported by stronger European prices. The November rapeseed contract on MATIF gained €12.25 over the week to €545.50/t. Meanwhile, Ukrainian rapeseed prices on a CPT port basis remained unchanged at $500/t.

As a result, selling rapeseed through Ukraine’s western border has become significantly more attractive than supplying domestic crushing plants. The $65/t price gap is intensifying competition for feedstock and could force Ukrainian crushers to raise their purchasing prices if they want to secure sufficient volumes.

At the same time, most of Ukraine’s new-crop rapeseed supply has already been harvested. As of August 10, farmers had harvested 3.22 mln tons from 1.191 mln ha, or 89% of the planned area, with an average yield of 2.71 t/ha. Further competition between exporters and crushers will therefore increasingly depend on farmers’ willingness to sell available supplies.

The European market remains one of the key destinations for Ukrainian rapeseed. With the western export route currently offering a substantial price advantage, a significant share of available supplies may continue to move toward Europe, increasing competition for feedstock and making it more difficult for Ukrainian crushing plants to secure sufficient volumes.