Rapeseed prices increased by 2%, which supported purchase prices in Ukraine

Yesterday, the August futures for rapeseed on the MATIF exchange in Paris rose 2% to 469,75 €/t or 502,3 $/t, as funds stepped up buying in anticipation of price recovery after falling by 4.4% during the month.

the Decrease in the forecast of rapeseed production in the EU due to excessive rainfall in the North-Western regions remains the main factor supporting prices. But the growth of prices is limited by low prices for Canadian canola and lower prices for soybeans in the United States.

On the Winnipeg stock exchange, the July canola futures after the previous fall of 2.9% yesterday rose by 1.4% to 592 CAD/t or 432 $/t (-13.7% for the month), and November – by 1.8% to 616 CAD/t or 450 $/t (-12.5%).

In Ukraine, the active harvesting of rapeseed will begin in 1-2 weeks, and traders will actively buy the first batch to close contracts for delivery in June-July. Therefore, farmers should take advantage of the high starting prices and sell part of the crop.

This week, export purchase prices for rapeseed with delivery to the Black Sea ports increased by 100-300 UAH/t to 19500-20500 UAH/t, and elevators began to declare the price of 17000-19500 UAH/t EXW.

Processors are still losing the competition with exporters, as they offer only 18500-19000 UAH/t with delivery to the plant.

Demand prices for rapeseed with delivery to the Czech Republic and Romania remain at 430-440 €/t, and to Germany – 440-450 €/t, as processors have significant stocks of old crop and large volumes of offers from local producers.

Improved weather in the US continues to lower soybean prices, which increases pressure on the quotations of all oilseeds, especially given the seasonal increase in supply of new crop rapeseed.

Tags: Ukraine, prices, rapeseed