Active demand from the EU supports rapeseed purchase prices in Ukraine at a high level

Published Sep 12, 2024

Tridge summary

Traders are purchasing Ukrainian rapeseed at higher prices due to a reduced 2023 harvest and potential production cuts in 2025, leading to increased sales from Ukrainian farmers. The EU's rapeseed imports have risen by 46% in the 2024/25 marketing year, with significant contributions from Ukraine and Australia. Despite rumors of China shifting canola purchases from Canada to Australia, no recent shipments have been made. Canadian farmers remain optimistic due to increased domestic processing capacity and strong biofuel demand, even as canola futures have dropped following a decline in oil prices. A USDA report may support future price quotes.

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

Original content

A lower than 2023 rapeseed harvest in Ukraine and a possible reduction in rapeseed production in 2025 have traders actively buying Ukrainian rapeseed, sometimes offering prices higher than those at which EU factories buy rapeseed from their farmers. This is reported by GrainTrade. 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 MR (as of September 8), the EU increased its 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 or 37, 5% - from Australia. ...

Source: Agrobusiness