Rapeseed prices in Paris reached €500/t, and in Ukraine approached UAH 22,000/t

On the stock exchange in Paris, the speculative growth of rapeseed prices continues, which rose by 8.2% during 8 sessions to 500.25 €/t or 540 $/t (+4.4% for the month) on forecasts of a decrease in the harvest in the EU, Ukraine and Australia.

Prices support forecasts of an increase in rapeseed imports to the EU in the new season due to a reduction in own harvest and supplies from Ukraine and Australia, high prices for Canadian canola (which has not been exported to the EU for two years), as well as an increase in oil prices to a 3-month high.

On the Winnipeg exchange, November canola futures rose 4.1% for the week to CAD 653/t, or $479/t (nearly flat on the month), amid gains in canola in Paris and soybean oil in Chicago.

December soybean oil futures in Chicago rose 9.6% this week to $1,055/t (+8.1% for the month) on forecasts of a cut in the US soybean harvest in the new season and increased processing in May and June.

U.S. canola and soybean oil are heavily used for biodiesel production, so stronger demand for the fuel to a 7.5-month high is also supporting oil prices.

In Ukraine, export purchase prices for rapeseed with delivery to Black Sea ports this week increased by 500-1000 UAH/t daily, and yesterday reached 21300-21700 UAH/t or $460-475/t, and exceeded 19600-20000 at domestic elevators UAH/t EXW. Demand prices for deliveries to the EU also increased by €10-20/t to €460-470/t. There are significantly fewer offers to deliver rapeseed by road to the EU than a year or two ago, as it is more profitable for farmers to sell rapeseed in ports, given the lower logistics costs and quick payment for the goods.

The rains delay the harvesting of rapeseed in Ukraine, although according to forecasts, it should have started 2-3 weeks earlier than usual. This forces traders to raise prices to accumulate enough to load the first ships of the batch.