Quotations for rape fell by 5.9% on the background of acceleration of harvesting and increase in offers

Rape quotes rose 7.5% in Paris last week, but fell 5.9% on Friday, nearly giving up the week’s gains amid weak demand in the physical market and increased canola supplies as harvesting ramps up in the EU and Ukraine.

In Ukraine, as of July 20, 1.39 million tons of winter rape were harvested from 563.52 thousand hectares or 41% of the area with an average yield of 2.47 tons/ha (1.94 tons/ha last year). Given the increase in the area of sowing and the high yield of rapeseed in the western and central regions at the level of 3.5-4.5 t/ha, the harvest may reach 3.8-4 million tons. This forces Ukrainian farmers to accelerate sales, which increases the volume of offers of cheap rapeseed with delivery to the EU at prices much lower than on the Paris exchange.

On the night of July 24, the Russian Federation attacked the Danube ports with drones, which led to fires and the stoppage of receiving goods, therefore, in the near future, sea deliveries will decrease, and truck transportation to the EU will increase.

The canola market is being pressured by the weather in Canada, where rainfall last week and next week will help the canola crop grow.

November canola futures on the Winnipeg exchange fell 2% to CAD 826/t or $624.8/t on Friday (-0.5% for the week, +14.7% for the month).

August rapeseed futures on the Paris exchange fell 5.9% to €470/t or $522/t on Friday (+1% for the week, +2.3% for the month).

In Ukraine, rapeseed purchase prices fell by $15-40/t to $340-350/t after the attack on the Danube ports and following the decline in global quotations.

In Australia, canola prices rose 3% for the week to AUD829/t or $555/t, down 24% from last year, according to ABARES. Weather conditions in the country have improved, so forecasts of lower harvests in Canada and Australia will reduce pressure on the market until rapeseed harvesting is completed in the EU and Ukraine.

Tags: Australia, Ukraine, EU, prices, Canada, rapeseed