Ukrainian rapeseed market: losses for traders and price uncertainty
The Ukrainian rapeseed market shows unprofitable trade and price instability. This is reported by analysts of the agricultural cooperative PUSK, created within the framework of the VAR.
“In August, Ukraine exported 878 thsd tonnes of rapeseed. According to our data, 580 thousand tons are contracted for export in September, but traders are very cautious about working with rapeseed. The main reason for the caution is the unprofitability of the crop for traders in July and August, when most of the deals were closed in the red. At the same time, farmers made money on rapeseed,” the analysts said.
As for the purchase prices in Ukraine, they remain under pressure from the unstable global market.
“Last week on Euronext, rapeseed prices ranged from 450-470 euros per ton. If we don’t see a rise to 475-480 euros per ton in the coming days, we can expect the market to return to 450 euros per ton,” analysts explain.
This, in turn, may lead to a decrease in domestic purchase prices in Ukraine.
“At present, the purchase prices range from 22,500 to 23,000 UAH/t. However, if the price on the European exchanges continues to fall, the purchase prices may decrease to 20 000-21 000 UAH/t,” the PUSK warns.
In addition, the rapeseed market remains under the influence of expectations for the next season.
“September and October are likely to be in a downward trend, but the highest prices for rapeseed are usually recorded in January-March. Therefore, those who decided not to sell now may want to hold stocks until winter,” the experts conclude.
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