Oilseed market prospects in Hungary

Published May 26, 2023

Tridge summary

The article provides an overview of the current state of the rapeseed and sunflower markets in Hungary, as discussed by Ferenc Balog at a meeting of UPL Hungary Kft. and Rapool Hungária Kft. The surge in global rapeseed prices, which peaked at 1,000 euros due to the Russian-Ukrainian war, has led to a decrease in planting areas and lower yields, with Hungary experiencing average yields of 3 tons. The war's impact on transportation and the expected outstanding harvests in major canola-producing countries promise a challenging year for rapeseed, while sunflower planting has increased, with processed sunflowers providing raw materials for oil despite initial quality concerns and price fluctuations. Balog emphasizes the importance of selling products at realistic prices to avoid losses and notes the factors influencing market prices, including the progression of the war, price caps, and exchange rates.

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

Original content

Ferenc Balog, head of oilseed trade at Viterra Hungary Kft., spoke about market prospects at the rapeseed meeting of UPL Hungary Kft. and Rapool Hungária Kft. in Rádpusztán. For comparison, it is worth recalling 2018, when the harvest in Europe was small (16 million tons), and we managed to achieve an average harvest of 3.2 tons here, so we were able to sell rapeseed at a price of around 380 euros without any problems. Now the stock price is around 390 euros, but in the meantime it was already 1,000 euros. The extraordinary surge was the result of panic following the outbreak of the Russian-Ukrainian war. From more than 300,000 hectares in 2019 to 200,000 hectares in 2021, the rapeseed area decreased. On the one hand, withdrawals made cultivation difficult, and on the other hand, all other field crops could be sold at a good price. Due to last year's drought, the average yield was also low, 2.5 tons, despite this, there are still domestic stocks. Domestic rapeseed consumption is ...

Source: magyarmezogazdasag