Active export of rapeseed from Ukraine supports purchase prices at a high level

Global quotations for rapeseed fell slightly last week, but in Ukraine, purchase prices remained at a high level thanks to active exports and purchases by traders. Friday's drop in oil prices by 3.7% has not yet affected the rapeseed market, but the pressure on quotations will intensify in the coming days.

During the week, rapeseed purchase prices in Ukraine rose to UAH 22,700-23,000/t, or $475-485/t delivered to Black Sea ports, as farmers almost stopped selling after the price cut. Processors offer 20,500-21,500 UAH/t for rapeseed with delivery to the factory.

According to IA "APK-Inform", in July Ukraine exported 278,000 tons of rapeseed, which was 15% higher than in July 2023 (242,000 tons) due to the early ripening of the crop and high oil prices. This was the largest indicator for this month in the last 5 years.

November rapeseed futures on the Paris exchange fell 1.7% last week to €472.25/t or $516.3/t (-3.3% for the month), barely reacting to forecasts of a reduced harvest in the EU.

November canola futures on the Winnipeg exchange fell 5.7% for the week to CAD 610/t or $439.35/t (-7% for the month).

Improving weather conditions in the Canadian prairies are helping to produce a good canola crop, so canola prices are falling after last week's speculative rally.