The purchase price of rapeseed in Ukraine continue to fall
the Projected fall in procurement prices for rapeseed in Ukraine accelerated following the sharp decline of quotations at the European stock exchanges on the background of strengthening of dollar against Euro to the level of 1,175 $/, an increase in supply on the EU market and increase of forecasts of production of canola in Canada due to favorable weather conditions.
Yesterday, the November canola futures on MATIF fell again by 2.25 €/tonne to 375 €/t, having lost in August is 2.4%, and the dollar price fell from 452 $/t 440,4 up to $/t
with the decline In rapeseed production in the EU and Ukraine in Canada last year increased exports of canola to the EU up to 2 million tons and continues to increase shipments this year.
the price of canola on the ICE exchange this week dropped to 488 CAD/t or 366,2 $/tonne, despite the news about the resumption of Chinese purchases of canadian canola after the introduction within two years of restrictions.
In Ukraine, purchasing prices for rape following the European fell during the week for 6-8 $/t to 417-420 $/t or 13600-13850 UAH/t at the port. Processors with delivery to the plant offer no more rape 13000-13500 UAH/t, so I can't compete with the exporters.
Another reason for the lower prices for rapeseed was the low seed oil content, thus affecting producers received significantly worse than last year's harvest.
As of 6 August in Ukraine with 1 million ha or 91% of the area harvested 2.2 million tonnes of rapeseed with a yield of 2.2 t/ha, whereas on this date in 2019 with 99% of the area was harvested 3.1 million tons of rapeseed with a yield of 2.46 t/ha.
the Expected increase in the August report of USDA forecasts soybean production in the United States and Brazil in the new season also puts pressure on the markets of oil on the background of falling prices for palm oil, which grew in recent weeks due to speculative factors.
Futures on palm oil exchange in Malaysia fell yesterday by 1.8% to 2709 Ringgits/t or 646 $/t LRAS on the data for July, where the volume of production and ending stocks were higher than expected, while exports in August, the projected slowing down due to too high prices.