Processors have sharply reduced rapeseed prices, but farmers are increasing supply for export

At the end of the week, the rapeseed market is experiencing slight pressure from offers to sell rapeseed for hryvnia from small farmers.

This led to a sharp decrease in purchase prices from processors, who lowered their purchase prices by 500-1000 UAH/t to 23500-23800 UAH/t with delivery to the plant and are observing an increase in supply.

The uncertainty regarding the timing of the entry into force of the law on 10% export duties allows traders who have ships to ship now to continue purchasing rapeseed for export for hryvnia, so in ports you can still find demand prices at the level of 24,500-25,000 UAH/t for quick deliveries, although the same traders, taking into account duties, declare prices at the level of 23,000-23,800 UAH/t with delivery to the port.

A slight pullback in exchange prices for rapeseed increased the pressure on rapeseed prices in Ukraine, which decreased by $5-8/t to $535-545/t CPT with delivery to Black Sea ports under foreign exchange contracts.

Next week, the rapeseed harvest will be completed in Ukraine and the actual harvest this season will become clear, which will add drive to exporters who have already lost the competitive battle with processors.

Export demand for Ukrainian rapeseed from the EU will remain high, as rapeseed harvests in Poland and Germany are delayed and farmers are holding back sales. Canadian canola remains quite expensive for export to the EU, and Australian canola will not appear on the market until December.