Ukrainian rapeseed prices are falling amid declining export demand

Published Jan 19, 2024

Tridge summary

Increase in rapeseed exports from Ukraine due to supplies through Black Sea ports, despite blocking of borders with neighboring EU countries. Decrease in demand for rapeseed leading to prices remaining stable in Ukraine but increasing in hryvnia. Global quotations for canola under pressure due to seasonal increase in supplies from Australia and decreasing demand for oil and biodiesel 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 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. This is reported by analysts of the GrainTrade electronic grain exchange. 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 ...
Source: Agrotimes
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