Rapeseed prices in Ukraine will not change significantly in the near future

Canola Seed & Rapeseed

Ukraine

Published Nov 1, 2022

Tridge summary

Russia's withdrawal from the grain agreement will not significantly affect rapeseed prices in Ukraine, since the main volumes were exported in August - October, and the remaining batches will be shipped through the western borders to the EU without problems. Speculative growth of rapeseed quotations on the European exchange to the highest since August 657 €/t is caused by the expiration of the November contracts.

Original content

However, February canola futures on the Paris exchange rose just €2/t last week to €638.75/t, matching the level of three weeks ago. Against the background of high oil and gas costs, the EU is increasing biofuel production, which supports rapeseed prices, but a drop in natural gas prices below the level of $1,000/m3 will soon reduce demand for biofuels. Vegetable oil markets remain under pressure from low palm oil prices, pushed down by buoyant exports from Indonesia and Malaysia. Good weather in South America is supporting soybean planting, adding pressure to soybean and canola prices. On the Winnipeg exchange, November canola futures fell to CAD 909.1/t, or $668/t, on Friday after last week's speculative gain of 3.8%, for a total gain of 1% for the week and a three-week gain of 4, 5%, while January futures fell 1.8% for the week to CAD 863/t or $633/t, losing 1.5% in three weeks. According to Statistics Canada, local farmers will harvest 19.1 million tonnes of canola, of which ...

Source: Graintrade