Purchase prices for rapeseed in Ukraine increased due to increased demand in Black Sea ports

The activation of Black Sea ports has expectedly led to an increase in demand for rapeseed - the most profitable crop for traders, buying which they can make good profits, even assuming risks in the price.

During the week, the purchase prices for rape with delivery to the port of Odesa or Chornomorsk increased by 500-700 UAH/t to 16,500-16,700 UAH/t or $465-470/t, while last year they were 20,000-20,500 UAH/t or 670- $680/ton.

Processors offer 15,000-16,000 hryvnias/t for rape with delivery to the plant, but the volume of processing this year will be low due to difficulties with the sale of meal.

Asking prices for rapeseed delivered to DAP Poland, Romania and Bulgaria remain at $550/t, but supplies are gradually reducing as sellers are more interested in shipping rapeseed to ports, given the shortage of vehicles and significant queues at the western borders, especially with Poland .

On global markets, canola prices remain volatile as demand for it remains, and Canada's canola crop estimate was lowered by StatCan to 19.5 million tonnes, while the USDA estimated it at 20 million tonnes, and analysts had expected an increase in production forecasts amid a favorable the weather

Since Monday, quotations for canola and canola on global exchanges have fallen under pressure from data from Canada and following the neighboring soybean market:

• November canola futures fell 1.3% to CAD 845/t, or $646.4/t, little changed for the week, compared with CAD 904.3/t, or $723/t a year ago.
• November Paris MATIF futures fell 4.5% to €602.25/t, or $603.88/t, losing 3.3% for the week, compared with €573.25/t, or $677, last year. $5/ton.

Now the prices of canola and European rapeseed are 5-6% lower than they were last year, while the purchase prices of rapeseed in Ukraine are 40-45% lower than last year. They therefore have potential for upside, even as canola and European canola prices fall further under pressure from increased supply from Canada in September.