A 2.2% drop in rapeseed quotations led to a decrease in purchase prices in Ukraine

Global soybean, canola and canola prices continue to fall under pressure from a complex soybean balance sheet and anticipation of increased new crop supplies from the Southern Hemisphere, while large unsold stocks remain in South America.

On Friday, November soybean futures in Chicago fell another 1.2% to the lowest level since autumn 2020 at $351.6/t (-9.5% for the month).

Dry and warm weather has settled in across the Canadian Prairies following recent rains, which will help canola pour and speed up harvest, adding to price pressure.

November canola futures on the Winnipeg exchange fell 2.5% to CAD 564/t or $412.7/t on Friday (-2.7% for the week, -15% for the month).

Following the drop in US quotes, November rapeseed futures in Paris also fell 2.2% to €453.5/t or $500/t on Friday (-0.7% for the week, -4.2 % per month). A sharp drop in canola prices improves the prospects for canola imports to the EU compared to rapeseed supplies from Ukraine.

In Ukraine, export purchase prices for rapeseed with delivery to Black Sea ports during the week increased from UAH 22,000-22,100/t to UAH 22,700-23,000/t, which stimulated sales by producers, but at the end of the week prices fell to UAH 22,300-22,500/t or $465-475/ton. An increase in the interbank dollar rate this week may lead to higher prices, especially if stock market quotations recover.

Ukraine exported 278,000 tons of rapeseed in July, 420,400 tons of rapeseed during August 1-13, and by the end of the month, analysts estimate, it will be able to ship another 500,000 tons of rapeseed.

High rates of export in the current season are due to the desire of traders to purchase the maximum amount of rapeseed in Ukraine against the backdrop of a reduction in production, since according to forecasts, the harvest in the EU and Australia will be lower than last year, so the volume of offers will decrease.