Ukraine Rapeseed Prices Plummet Amidst Shipping Woes and Strong Euro

Rapeseed prices in Ukraine have continued to fall as domestic demand remains subdued due to limited shipment opportunities and high logistics costs. According to recent data, November rapeseed futures on the Euronext Paris exchange fell by 2.5% to €523.5/t or $604/t (-6.8% in two weeks, +1.8% in the month) under pressure from falling oil prices and increasing physical supply of the new crop.

The appreciation of the euro against the dollar has also increased dollar prices for rapeseed, which supports prices in Ukraine. Domestic demand prices for processors decreased by 1,000-1,500 UAH/t to 19,500-21,000 UAH/t with delivery to factories, and for exporters shipping rapeseed from domestic elevators to western terminals - by 1,000 UAH/t to 20,500-21,000 UAH/t EXW elevators.

The Ukrainian harvest forecast remains at 3.5 million tons, with 2.39 million tons already harvested as of August 3 from 910.6 thousand hectares or 68.4% of the projected area, with an average yield of 2.63 tons/hectare. Markets do not expect a quick settlement of sea exports from Ukraine, so processors and traders are adjusting to supplies of rapeseed and meal to the EU through the western border.