News

Purchase prices for rapeseed in Ukraine are decreasing due to a decrease in export demand

Published Jan 19, 2024

Tridge summary

Ukraine increased rapeseed exports through Black Sea ports due to border closures with EU countries, but most traders are ending their export programs leading to a decrease in demand and prices. Despite stable prices in Ukraine, hryvnia prices have increased due to strengthening of the dollar, and Ukraine's rapeseed exports decreased by 17% in December. With other countries increasing their canola supplies, the export of canola in the first quarter of 2023/24 may decrease by 20% compared to the previous year, and the demand for energy crops is expected to decrease due to increasing sales of electric vehicles.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Increasing supplies through the Black Sea ports allowed Ukraine to increase rapeseed exports against the background of blocking the borders with neighboring EU countries for 3 months. At the same time, most traders are ending their rapeseed export programs, so the demand for it is decreasing, and it is not worth counting on an increase in prices in the near future, reports graintrade. Rape prices in Ukraine remain at the level of $365-380/t with delivery to the Black Sea ports, but hryvnia prices increased during the month against the background of strengthening of the dollar by 5% to UAH 15,500-16,200/t. The lack of competition and the possibility of exporting to the EU by road allows traders to buy the necessary consignments at the port. Demand prices for supplies to Germany and the Czech Republic for the month fell by €10/t to €400-410/t, which makes them unprofitable for farmers given the 1.5-fold increase in logistics costs caused by border closures compared to ...
Source: Landlord
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