The rise in rapeseed futures prices in Paris supports prices in Ukraine

Abnormally high temperatures and lack of precipitation in the summer have led to a critical drop in water levels in Europe's main waterways - the Rhine, Danube, Po and Loire, causing supply and energy disruptions. Cargo barges are loaded only 20-30% of normal, which sharply increases freight costs and delays deliveries of various goods, including rapeseed, from domestic suppliers, who have significantly increased sales, which led to a decrease in rapeseed quotes the week before last.

 

The halt in sea exports of rapeseed from Ukraine and the delay in supplies from local farmers have once again increased demand for rapeseed from European processors.

 

November rapeseed futures on the Euronext Paris exchange rose 3.9% to €533.25/t or $617/t over the week (-3.3% over two weeks, +2% over the month), supported by rising oil prices.

 

Demand prices for rapeseed delivered to factories in the EU in August-September remained at the level of €500-520/t, but space for acceptance is limited.

 

On the ICE exchange in Winnipeg, November canola futures rose 2.8% for the week to 780 CAD/t or $559/t, partially offsetting the previous week's 10% drop, and are trading at last month's level.

 

The weather in Canada remains very favorable for canola crops, so the harvest forecast remains high.

 

In Ukraine, domestic demand prices for rapeseed have stabilized amid active purchases by processors and export demand on the western border.

 

During the week, demand prices for rapeseed from processors remained at the level of 19,500-21,500 UAH/t with delivery to factories, while exporters shipping rapeseed from domestic elevators to western terminals offered 20,000-21,500 UAH/t EXW elevators.

 

Against the background of limited demand on the western border, demand prices were $540-560/t DAP, export demand prices for rapeseed in the ports of the Danube and the Black Sea were declared at $470-490/t or 20,500-21,500 UAH/t, and with delivery to terminals on the western border - at $450-480/t or 20,500-21,500 UAH/t.

 

Information that Turkey is trying to force the Russian Federation and Ukraine to stop attacking civilian ships in the Black Sea gives little hope for the start of negotiations and, possibly, the resumption of sea exports from Ukraine in September - October, so farmers may limit sales of rapeseed at low prices, which, against the background of rising stock market quotes, will support prices in Ukraine.