Purchase prices for rapeseed in Ukraine are increasing against the background of increasing volumes of sea exports

Demand for Ukrainian rapeseed from exporters continues to grow against the background of increasing exports through Black Sea ports and steps to unblock the border with Poland.

In Ukraine, rapeseed prices rose to $365-375/t or UAH 15,000-15,500/t with delivery to Black Sea ports, which corresponds to the September level, while demand prices for deliveries to the Czech Republic and Germany rose to €410-420/t .

In November, compared to October, Ukraine reduced rapeseed exports by 100,000 tons to 337,000 tons, and in total, in 2023/24, Ukraine exported almost 2.4 million tons (2.8 million tons in the same period last year).

In 2023, domestic farmers harvested 4 million tons of rapeseed, of which 700-800 thousand tons are planned to be processed, and the remaining 3.3-3.5 million tons are to be exported.

The volumes of rapeseed processing and export of processing products also increased. Thus, in 2022/23 MR, Ukraine exported 84 thousand tons of rapeseed oil, and for 5 months of 2023/24 MR, already 340 thousand tons (in particular, in November, 49 thousand tons), which is equivalent to 700 thousand tons of rapeseed.

By the end of the season, Ukraine can export another 1 million tons of rapeseed, so European processors should help unblock borders to get cheap raw materials. According to the European Commission, Australian canola prices are currently $502/t FOB, Canadian canola is $519/t FOB, while European canola is $463/t FOB and Ukrainian canola is $400-420/t FOB.

In 2023/24 MR, EU countries reduced rapeseed imports by 25% compared to the previous season to 2.34 million tons (with a forecast of 5.1 million tons), of which 66% were supplied from Ukraine.

We will remind that the USDA increased the forecast of world rapeseed production in 2023/24 MR by 1.4 to 87 (88.82 in 2022/23 MR) million tons, in particular for Canada - by 1 to 18.8 (18.7) million tons and Australia - by 0.4 to 5.5 (8) million tons. Accordingly, the export forecast for Australia was increased by 0.2 to 4.4 million tons and Canada - by 0.2 to 7.7 million tons, while for of Ukraine, it was reduced by 0.2 to 3.45 million tons.