Despite the increase in production prices for rapeseed in Ukraine are growing

Ukraine in 2019 will increase rapeseed production in comparison with the previous year by 20.4% to 3,313 million tons due to expanding acreage by 25%, - reported the experts of the Institute of agroekonomika.

According to estimates by the agriculture Ministry, currently, 1.2 million hectares or 92% of crops are in good or satisfactory condition.

In 2018 year, Ukraine has collected 2,747 million tonnes of rapeseed with the average yield of 26.5 t/ha, compared to 2,195 million tonnes in 2017.

Forward prices for rapeseed of the new harvest from early spring rapidly falling behind world prices for oilseeds. Further pressure on prices increase in forecast soybean production and the uncertainty surrounding the exports of canadian canola oil to China via the strained relations between the two countries.

Canola in Chicago is trading only at 330 $/t, which puts pressure on price of rapeseed in the EU and Ukraine. Large residues of canola for sowing and favorable weather conditions in Canada will increase the supply of oilseeds in 2019.

the Forecast of rapeseed crop in the EU is reduced to 5-year low of 19.2 million tons due to reduced acreage. However, this did not affect the prices of rapeseed on Euronext, as the volume of global supply is still very large.

the August rapeseed futures on Friday fell by 1.5 €/t to 362,75 €/t or 406,84 $/t, and the November – 1.5 €/t to 366,5 €/t or 409,3 $/t

In Ukraine, the forward price of rapeseed grew within the week by $5/MT to 390-395 $/t for deliveries to the port in July amid rising world prices of soybeans and vegetable oil.

it is Expected that the reduction in the stocks of sunflower seed in Ukraine will lead to an increase in the volume of domestic processing of canola, will increase competition between exporters and processors and will support the purchase price.

In the 2018/19 season, the rapeseed crop in Ukraine amounted to almost 2.8 million tonnes, while exports exceeded $ 2.44 million tons In the current season will be exported 2.8 million MT of rapeseed, while the processing capacity will increase to 0.5 million tons.