Purchase prices for rapeseed in Ukraine continue to decline actively

2021-06-23 12:08:52
Machine translation
Purchase prices for rapeseed in Ukraine continue to decline actively

A sharp drop in world prices for vegetable oils has increased pressure on oilseed markets. Thus, in Ukraine, purchase prices for sunflower and rapeseed decreased by 10-20% within two weeks.


The weather in Ukraine contributes to the development of rapeseed crops, but due to low temperatures and prolonged precipitation, harvesting will begin 2-3 weeks later than last year.


Forward prices for the supply of rapeseed with a base oil content of 42% to the port in July – August for the week fell by 10-12% to 5 550-560/ton. Additionally, they are pressured by a decrease in purchase prices for sunflower from UAH 18,000-19,000/ton to UAH 14,500-15,500/ton.


Improving weather in the United States lowers global prices for soybeans and soybean oil. However, heat forecasts for the next 7-10 days in Canada, where the weather is currently favorable for the development of canola crops, may increase the speculative impact on rapeseed prices.


During the week on the Chicago Stock Exchange, July canola futures fell 13.8% to 742.3 CAD/ton or 6 602.4/ton, and November – only 1.6% to 713.3 CAD/ton or 5 578.9/ton. prices for new crop canola are rising for two consecutive sessions amid uncertainty about the fate of the future crop.


The European agency MARS, even despite the poor production prospects for France, raised its forecast for rapeseed yields in the EU from 3.21 to 3.23 t/ha, which will exceed the average 5-year figure.


On Euronext in Paris, August rapeseed futures are rising for the second day in a row and yesterday rose by 4.25 €/ton to 494.5 €/ton or 589.5 € /ton, losing 0.8% of the price for the week. But as a result of the fall in the euro exchange rate, the dollar price fell by 1.7%.


The European Union imported 65.8 thousand tons of rapeseed in a week, and in general in the season – 6.2 million tons, which is 3% higher than last year's figure. Ukraine and Canada each accounted for 33% of total imports, while Australia accounted for 27%. Canada has almost doubled its supply of canola to the EU this season, and will also remain one of its main suppliers next season.


Forecasts for the rapeseed harvest in the EU and Ukraine in 2021 remain at the level of the previous season, so canola supplies from Canada may increase. And if its crop decreases, rapeseed prices will get a new boost to growth.

Visitors’ comments (0):