Rapeseed yields in the European Union (EU) are good and stocks are high. Their imports and exports decreased, and so did prices. Rapeseed is even cheaper in Ukraine, but sales from there are stalling due to logistical difficulties.
Against the backdrop of last year’s high stocks, the increase in this year’s EU rapeseed harvest is putting pressure on domestic prices. According to the European Commission, imports of rapeseed into the EU slowed down significantly in the new season, reaching 249.05 thousand tonnes from 1 July to 13 August, 63% lower than the same period last season (678.2 thousand tonnes).
During the same period, rapeseed deliveries to the EU from Australia fell from 423 to 103 thousand tonnes and from Ukraine from 176.3 to 20.1 thousand tonnes. Only from Moldova the increase was from 23.4 to 95.3 thousand tonnes.
Rapeseed exports from the EU also slowed down, reaching 86.5 thousand tonnes by 16 August, 45% below the corresponding figure for the previous season (156.6 thousand tonnes). Shipments of European oilseed rape to Canada amounted to 41.7 thousand tonnes and to Great Britain to 41.1 thousand tonnes.
The prices of rapeseed for October-November deliveries are in the range of EUR 0,40-41/kg in German ports, EUR 0,39-0,40/kg in Romanian ports and EUR 0,39-0,40/kg in Baltic ports. In addition, many buyers are requesting the suspension of deliveries under August contracts due to overcrowding.
On Euronext Paris, rapeseed futures for November rose by 2.6% week-on-week to 0,47 €/kg. This is thought to be due to the appreciation of Canadian rapeseed, supported by soy demand in the US, amid rising demand for biodiesel. However, this year’s rapeseed price is still currently well below last year’s price, which was also above €0,60/kg
Canadian rapeseed is much more expensive than European rapeseed. On the Canadian Winnipeg exchange, November oilseed rape futures rose by 4.3% over the week to 0,54 €/kg, but it is suggested that the start of the harvest, with favourable weather conditions, could put downward pressure on prices in the near future.
The blocking of agricultural exports from Ukraine’s Black Sea ports is increasing pressure on Ukrainian rapeseed procurement prices, while low demand and prices in the EU are almost paralysing trade in the country, according to the Ukrainian Electronic Grain Exchange.
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