15 Aug 2023 17:18

Ukrainian rapeseed exports slowing, world prices growing - analysts

MOSCOW. Aug 15 (Interfax) - Ukraine has reduced rapeseed export to 220,000 tonnes per month, 44.4% below a required 350,000-400,000 tonnes, Ukrainian media reported, quoting experts from the analytical center of the PUSK agricultural cooperative, set up within the Ukrainian Agri Council (UAC) framework.

"Rapeseed exports have slowed. Ukraine needs to export 350,000-400,000 tonnes per month, but exports do not exceed 220,000 tonnes. For September, Ukrainian rapeseed will be delivered to Romania, Lithuania and Germany by road and rail only under forward contracts. Forward contracts are beyond small river ports, only the spot market works there. Rapeseed supply is low," the analysts say.

Processors are gradually raising purchase prices to UAH 14,000 per tonne and in some region to UAH 14,200 per tonne. Large consignments of 2,000-3,000 tonnes of rapeseed are being exported to the EU, forcing domestic processors to raise prices.

One of the factors behind the rise in prices for rapeseed is news of a lower gross harvest in Canada, the world's key producer of canola.

"According to a USDA report, the outlook for the rapeseed harvest in Canada has been lowered by 1 million tonnes. But we can expect a further decrease in the forecast due to weather conditions. Further price trends in the global market will depend on the volume of oilseed production in Canada," the UAC said.

In the coming week, indicative prices at small river ports could rise to $380-390/tonne and purchasing prices to UAH 14,400/tonne, the experts predict.