Quotations for rape rose by 2%, which supported purchase prices in Ukraine

Yesterday, August rape futures on the MATIF exchange in Paris rose 2% to €469.75/t, or $502.3/t, as funds stepped up buying in anticipation of a recovery in prices after falling 4.4% during the month.

A decrease in the EU rapeseed production forecast due to excessive rainfall in the north-western regions remains the main factor supporting quotations. But price gains are limited by low Canadian canola quotes and lower U.S. soybean prices.

On the Winnipeg exchange, July canola futures rose 1.4% to CAD 592/t or $432/t (-13.7% on the month) after falling 2.9% yesterday, while November futures were up 1 .8% to 616 CAD/t or $450/t (-12.5%).

In Ukraine, the active harvesting of rapeseed will begin in 1-2 weeks, and traders will actively buy the first batches in order to close contracts for deliveries in June-July. Therefore, farmers should take advantage of the high starting prices and sell part of the crop.

This week, export purchase prices for rapeseed with delivery to Black Sea ports increased by UAH 100-300/t to UAH 19,500-20,500/t, and elevators began to declare a price of UAH 17,000-19,500/t EXW.

Processors are still losing the competitive battle with exporters, as they offer only UAH 18,500-19,000/ton with delivery to the factory.

Demand prices for rapeseed delivered to the Czech Republic and Romania remain at €430-440/t, and to Germany at €440-450/t, as processors have significant old-crop stocks and large volumes of offers from local producers.

Improving US weather continues to weigh on soybean prices, adding pressure to quotes for all oilseeds, especially given the seasonal increase in new-crop canola supplies.