Global Rapeseed Price Trends
Global quotations for rapeseed saw a slight decline last week. However, in Ukraine, purchase prices remained high due to active exports and strong demand from traders. Despite a 3.7% drop in oil prices on Friday, the rapeseed market has not yet felt the impact, but pressure on quotations is expected to intensify in the coming days.
Ukrainian Market Resilience
- During the week, rapeseed purchase prices in Ukraine increased to UAH 22,700-23,000 per ton ($475-485 per ton) delivered to Black Sea ports.
- This rise occurred as farmers nearly ceased selling following a previous price cut.
- Meanwhile, processors are offering UAH 20,500-21,500 per ton for rapeseed delivered to factories.
Strong Export Performance
According to APK-Inform Ukraine exported 278,000 tons of rapeseed in July, a 15% increase from July 2023’s 242,000 tons. This surge is attributed to the early ripening of the crop and high oil prices, marking the highest export volume for July in the past five years.
Futures Market Movements
November rapeseed futures on the Paris exchange fell by 1.7% last week to €472.25 per ton ($516.3 per ton), a 3.3% decline for the month. This drop occurred despite forecasts of a reduced harvest in the EU.
In Canada, November canola futures on the Winnipeg exchange fell by 5.7% for the week to CAD 610 per ton ($439.35 per ton), reflecting a 7% decline for the month. Improved weather conditions in the Canadian prairies are expected to result in a good canola crop, causing prices to fall after last week’s speculative rally.
The persistence of high rapeseed prices in Ukraine contrasts with the global trend of declining quotations. The strong export performance and trader activity are key factors sustaining these prices. However, the market remains sensitive to external pressures, such as oil price fluctuations and global supply conditions. Stakeholders in the rapeseed market should closely monitor these dynamics to adapt their strategies effectively. The coming weeks will be crucial in determining whether Ukrainian prices can maintain their resilience amid global trends.