News

Purchase prices of rapeseed in Ukraine are falling against the background of a decrease in export demand

Published Jan 18, 2024

Tridge summary

Ukraine has increased rapeseed exports through Black Sea ports, but most traders are ending their export programs, leading to decreased demand and stagnant prices. The lack of competition and increased logistics costs due to border blocking has caused a decrease in rapeseed exports from Ukraine and pressure on global quotations. Additionally, the increasing sales of electric vehicles is leading to a decrease in demand for oil and biodiesel, which will further impact the demand for energy crops in the future.
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. But most of the traders are ending their rapeseed export programs, so the demand for it is decreasing, and it is not worth counting on a rise in prices in the near future. 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 deliveries to Germany and the Czech Republic for the month fell by 10 €/t to 400-410 €/t, which makes them unprofitable for farmers in view of the 1.5-fold increase in logistics costs caused by the blocking of borders compared to August-September. In ...
Source: Graintrade
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