The rapeseed market is expecting further price growth.
Such expectations in the market are supported by the slow pace of the harvesting campaign in Ukraine, as well as news of a low rapeseed crop in Canada. Ukrainian farmers restrain their sales due to the current low purchase prices.
Currently, the export of rapeseed is lagging. Around 500,000 tons of Ukrainian rapeseed was contracted for July, and up to 700,000 tons for August. In fact, Ukraine supplied only 100,000 tons of rapeseed. Only 300,000 tons of rapeseed were harvested in the country. But the main reason for the low rate of export is the price impact.
Today, rape is not profitable as it was last year. Farmers restrain in sales, selling small lots. The average price for non-GMO rapeseed is 370-375 euro/t. But prices are increasing every day, so farmers are in no hurry to sell. Due to this, a severe shortage of rapeseed supplies was formed on the market, and traders’ contracts are “on fire”. Nevertheless, in July we may see a “price bottom” under the pressure of harvesting, but in the future prices will increase.
Rapeseed has good prospects for the coming months. Already at the beginning of August, we can expect a mark of EUR 400/t on CPT terms, river ports.