Active demand from the EU supports the purchase prices for Ukrainian rapeseed at a high level

Published 2024년 9월 12일

Tridge summary

Traders are increasingly purchasing Ukrainian rapeseed due to a lower 2023 crop and potential production cuts in 2025, sometimes offering higher prices than EU factories. This has led to a rise in export purchase prices and intensified sales by Ukrainian farmers. Despite high demand in the EU, logistics costs limit road or rail deliveries. The EU has boosted rapeseed imports by 46% for the 2024/25 fiscal year, with significant contributions from Ukraine and Australia. Non-GMO rapeseed from Ukraine is preferred by processors due to GMO meal sales restrictions. Canola futures have dropped with oil prices, but a USDA report downgrade on global canola production may support prices. Rapeseed exports increased by 13.5% in July.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

A lower rape crop in Ukraine than in 2023 and a possible reduction in rape production in 2025 have traders actively buying Ukrainian rape, sometimes offering prices higher than those at which EU factories buy rape from their farmers. This is reported by analysts of the GrainTrade electronic grain exchange. During the week, export purchase prices for rapeseed in Ukraine increased by UAH 100-200/t to UAH 22,900-23,200/t or $490-495/t with delivery to Black Sea ports, so farmers intensified sales. Demand prices for rapeseed delivered to the factory in the Czech Republic or Germany remain at 465-475 €/t or 510-520 $/t, but road or rail deliveries in this direction are almost non-existent, as the cost of logistics is 60-70 $/t exceeds the cost of delivering rapeseed to the ports. In the 2024/25 FY (as of September 8), the EU increased the import of rapeseed by 46% compared to the previous season to 939,000 tons, of which 505,000 tons or 54% were supplied from Ukraine and 352,000 tons ...

Source: Agrotimes