Rape prices in Ukraine continue to fall against the backdrop of reduced export demand

The blocking of the border by Polish "farmers" almost stopped the already insignificant supplies of rapeseed from Ukraine to Germany or the Baltic countries. As a result, rapeseed prices in the western regions of Ukraine decreased from 15,300-15,500 UAH/t per FCA farm a few weeks ago to 14,700-15,000 UAH/t, while prices in ports fell to 16,000-16,200 UAH/t or $370/t .

European canola quotes rose 2% during the week amid curbs on supplies from Ukraine, but were pressured by lower canola prices in Canada.

May rapeseed futures on the Paris MATIF during the week rose by 1.9% to €426.75/t or $459.5/t (-1.6% for the month), but remain at a low level.

March canola futures on the Winnipeg exchange fell 5.8% last week but were up 2.7% on Friday at CAD578/t or $428/t (-10% on the month) following a decline prices for soybeans and soybean oil in the US, which is used in the production of biodiesel.

The pick-up in soybean harvesting in South America and forecasts of an increase in soybean acreage in the U.S. are also adding pressure to soybean and canola quotes.

In a February report, AAFC experts lowered their 2023/24 FY canola export forecast by 0.7 mn t to 7 mn t, which would be 1 mn t lower than the 2022/23 FY 2022 estimate, compared to January estimates. increased compared to last year from 1.5 to 2 million tons.

The decrease in Canadian canola prices to $420-430/ton will stimulate its supplies to the EU, where prices have risen to $460-470/ton, which will strengthen competition with Australian and Ukrainian rapeseed on the European market.