Prices for rapeseed in Ukraine fall under pressure from new crop

Since the beginning of the week the price of rapeseed in Ukraine dropped by another 2-3 $/t to 395-396 $/t and UAH – 250-350 UAH/t to 11700-11800 UAH/t for deliveries to the port. Main the cause of the fall in prices was the decline in rape in Paris as a result of the strengthening of the dollar against the Euro from 1.13 to 1.12 $/€, as well as the strengthening of the hryvnia from 26.2 to 25.47 UAH/$.

On July 8, in Ukraine 44,6% of the area gathered 1,231 million tonnes of winter rapeseed with a yield of 2.13 t/ha. Preliminary data from the Central regions confirms the decrease in yield and oil content in comparison with the previous year, due to the heat during maturation.

Precipitation next week may delay the harvest of rapeseed in the Central and Western regions of Ukraine, further reducing productivity.

Prices for rapeseed in Paris yesterday rose 3.5€/t up to 368 €/t or 412,4 $/t after the Ministry of agriculture of France has lowered the forecast of oil production in the country in comparison with the previous year by 27% to 3.6 million tons.

France grows predominantly winter rape, sowing fully allowed autumn drought in 2018 the acreage in comparison with the previous season, decreased by 19% to 1.31 million hectares. moisture Deficit felt by the entire country, with the exception of Normandy.

in addition drought on crops of rape negatively affected also the invasion of cruciferous flea beetles, which deal with the producers has become more difficult after the prohibition of the use of insecticides containing neonatology.

it is Expected that the oil market will get support on Thursday, as the balance of soy experts USDA reduce the forecast production in the U.S. up to 104.8 million tonnes compared with the June estimate of 113 million tonnes and last year's harvest 123,6 million tons