Ukrainian export disruptions boost Romanian rapeseed prices

Article author:

Olena Hesova Grains

Oilseeds & Pulses Market Analyst

Expectations of export disruptions from Ukraine additionally boosted Matif and the EU market – the largest buyer of Ukrainian rapeseed

MATIF added EUR 8/mt to EUR 544.5 mt las week, as importers are focused now on own production to cover the immediate demand of the biodiesel sector until the Black Sea situation normalizes.

Romanian rapeseed jumped to EUR 544/mt CPT, a sharp rise w/w (+EUR 17/mt) and a multiyear country maximum. In the short-term further price rises are expected, as traders report about high demand from the EU due to high crude oil prices and continuing military risks in the Black Sea region.

Buyers are increasingly pricing Romania as the EU’s most reliable Black Sea origin. As long as uncertainty over Ukrainian exports continues, Romanian rapeseed is likely to include with reliability/geopolitical premium.

While early-maturing regions in Southern and Southwestern Europe completed or are nearing the end of their harvests, the active rapeseed harvesting is still underway in Central and Northern Europe. Recently several European analytical agencies decreased their rapeseed production outlooks, however for Romania – a reliable Black Sea supplier, the expectations remained at the June levels.

Production of Romania is closely watched by the major EU processors, which face difficulties with deliveries from Ukraine after disruption at ports, higher freight costs for deliveries from Australia.

Recently, Polish processors said they are prepared to buy Romanian rapeseed due to the losses of own crop and sharp expansion of Polish processing capacities, which reached 4 MMT.

Thus, local processors watch the current price indications of Romanian rapeseed and expect immediate offers after the harvesting.

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Tags: Australia, Ukraine, export, Romania, EU, prices, Poland, rapeseed