Ukraine’s 2022-23 winter rapeseed area at 13-year high

Ukrainian winter rapeseed area for the 2022-23 marketing season reached a 13-year high, supported by elevated prices and good profitability of the crop this marketing season.

Winter rapeseed crops were planted on 1.41mn hectares (ha) compared with nearly 1.01mn ha for the 2021-22 marketing year to 30 June, according to Ukraine’s statistics service. This is up by about 40pc on the year and only 2pc lower than the previous record high of 1.44mn ha in 2009-10.

The increase resulted from high profitability of the crop this marketing season amid record yields and high prices on the global market, as well as favourable weather conditions during last autumn’s planting — unlike in 2020, when many farmers were forced to reduce rapeseed areas owing to a lack of moisture during sowing.

In addition, rapeseed price outlook for the upcoming marketing season remains bright because of strong demand amid supply tightness globally, despite an output rebound expected in key producing countries.

Ukraine’s local forward prices for 2022-23 rapeseed crop sit at around $680/t cpt for shipment in July-August, compared with $505/t cpt last February and $415/t two years ago, market participants said. This leaves rapeseed as potentially one of the most profitable winter crops in Ukraine ahead of the start of the new marketing season, with an estimated average cost of production standing at about $440/t, excluding value-added tax.

Meanwhile, Ukrainian farmers reduced winter wheat and barley areas for the 2022-23 marketing season, with profitability of both crops expected to be affected by a sharp increase in fertilizer prices.

The country’s 2022-23 winter wheat planted areas totalled nearly 6.54mn ha — 176,000ha, or 2.6pc, lower than last year’s 6.71mn ha, while winter barley acreage fell to its four-year low of 969,000ha, down from 1.08mn ha a year earlier.

Ukraine winter rapeseed areas ‘000t

Ukraine winter wheat areas mn t

Argus Media

Tags: demand, winter rapeseed, Ukraine, prices, yields, global market, supply