Ukraine this year to start exports of rapeseed in China

Open access of Ukrainian rapeseed to the Chinese market boosts the demand for oil and increase competition with the EU, which will affect the purchase price.

Ukraine in 2019 with forecast at 3.6 million tons gathered 3.1 million tons of rapeseed, of which exports 2.5-2.7 million tonnes IN 2018/19 MG Ukraine has raised 2.8 million tons of rapeseed, of which exported 2,452 million tonnes, 16% higher than the export 2017/18 MG and is a record of the last 10 seasons.

the Main buyer of domestic rapeseed is the EU, which this season has increased compared to 2018/19 MG import canola from 26% to 5.5 million tonnes, since, according to the European Commission, its own production in the EU decreased by 16.6% to 16.9 million tons.

the Ukrainian producers had hoped that due to high demand from the EU, the price of canola will be higher than last year. However, the low Euro exchange rate and a significant harvest of canola in Canada, the import of which in the EU may grow, that limit the growth of prices for domestic rapeseed 395-400 $/t at the beginning of the season, 406-408 $/t now in port, although last year they were 410-430 $/t

the price of rapeseed on Euronext in Paris rose from 362-365 €/ton early in the season to 386 €/ton or 424 $/t

Delayed harvest and potential yield losses of canola in Canada has led to growth of quotations in the month of October from 450 to 460 CAD/t or 345,3 $/t China's Refusal to buy canadian goods through political disputes puts pressure on the price of canola.

the cancellation of the purchase of canola in Canada and soybeans in the U.S. has forced China to actively import oilseeds from other countries, in particular, canola and soybeans from Russia.

Directoryslash of Ukraine reported that in 2019, Ukraine could start exports of rapeseed in China. Now the Chinese inspection authorities have given Ukraine a draft Protocol for the supply of rapeseed, which can be signed before the end of the year, and then immediately start the shipment.

In 2016 Ukraine tried to negotiate the issue of export of rapeseed in China, but was refused.

this season, the supply of Ukrainian rapeseed will be small, because at the end of the season the export potential is exhausted, and next year China will become a competitor to the EU in the struggle for Ukrainian rapeseed.

Under the harvest 2020 in Ukraine winter rapeseed planted 1.1 million hectares or 96% of plan, which is 18% less than was seeded for harvest in 2019 the Reduction in the area due to the dry conditions of August and September, which did not allow to sow the planned area and to obtain a good harvest.