Purchase prices for rapeseed are rising in Ukraine

2021-07-05 12:53:49
Machine translation
Purchase prices for rapeseed are rising in Ukraine

Against the background of rising world prices for rapeseed and rapeseed, last week there was also an increase in purchase prices for rapeseed in Ukraine, which increased by 1000 UAH/ton to the level of 18500-18800 UAH/ton with delivery to the port or 595-605 $/ton, which is almost 50% higher than the price levels at the beginning of last season.


High prices for rapeseed at the beginning of the season are associated with high demand from the EU and good sales of Ukrainian rapeseed traders to China and even Canada.


Rapeseed harvesting in Ukraine is delayed due to heavy precipitation in the last two months, but the forecasts of the rapeseed harvest are increasing and may even exceed the level of last season about 2.6 million tons, despite the decrease in sowing areas.


But if the yield is even higher than predicted, it may bring down prices after the start of harvesting, as has already happened in the barley and wheat market.


The high level of rapeseed prices is supported by high canola prices in Canada, where there are not the most favorable conditions for crops, especially in recent weeks, when a wave of hot weather has covered the canola growing area, and precipitation is limited.


On Friday, November canola futures on the stock exchange fell 2.2% to 812 CAD/ton or 6 658/ton, but overall rose 5.5% for the month.


Statistics Canada raised its forecast for canola sowing areas in the new season by 8.2% to 22.5 million acres, or 9.11 million hectares, but due to a possible decrease in yield, the gross yield will not increase so significantly.


August rapeseed futures on Euronext on Friday fell by €1.25/ton to €536.5/ton or €636.1/ton, although overall quotes rose by € 29.5 / ton over the week.


Rising oil prices, as well as the recovery of palm oil prices, which rose by 7.6% over the week, will support vegetable oil prices and rapeseed prices.


Prices for sunflower in Ukraine of the old and new crops have now leveled off by one level of about 16000-17000 UAH/ton with delivery to the plant, which will also support rapeseed prices from decreasing after increasing supplies during the new harvest.

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