Farmers should take advantage of the high starting prices and sell part of their crop
The mass harvesting of rapeseed in Ukraine has not yet started. Only south regions have collected some stocks. So traders who have contracted significant volumes for July are actively raising purchase prices at the ports to accumulate the maximum lots. They realise that the decrease in the harvest in the new season will significantly increase competition with processors.
This week, export purchase prices for rapeseed with delivery to Black Sea ports increased by 15-20$/t to 430-450$/t or 19,000-20,400 UAH/t. This corresponds to the level of forward prices and contributes to the activation of sales by producers. The price of 17,000-19,500 UAH/t began to be declared at the elevators.
Processors are still losing the competitive battle with exporters, as they offer only 18,500-19,000 UAH/ton with delivery to the factory. They will be forced to expect a July price decrease under the pressure of increasing supply.