Ukrainian farmers have been hit hard by the drop in rapeseed prices

Purchase prices for rapeseed in Ukraine continue to decline. The main factors behind the drop are the lack of maritime exports, falling global exchange prices, and high costs for road and rail logistics.

After maritime shipments were halted, European processors actively purchased Ukrainian rapeseed across the western border and effectively met their own needs through November and December. This significantly weakened demand in the EU. The market is also under pressure from falling oil prices: Brent crude futures dropped to $84 per barrel, causing November rapeseed futures on the Euronext exchange in Paris to fall to €523.5 per metric ton, while Canadian canola on the ICE exchange in Winnipeg lost 4.2%.

Domestically, over the past week, processing plants have lowered prices by 1,000–1,500 UAH—to 19,500–21,000 UAH/metric ton, delivered to the plant. Exporters’ prices at the western border stand at $540–560/metric ton (DAP), at Danube ports — $470–490/metric ton (20.5–21.5 thousand UAH/metric ton), while purchases at similar prices have effectively ceased at Black Sea ports. Farmers in southern and remote regions are in the most difficult situation due to the high cost of transportation to the western border.

As of August 3, Ukraine had harvested 2.39 million metric tons of rapeseed from 68% of the projected area, with an average yield of 2.63 metric tons per hectare. The total harvest is expected to reach 3.5 million metric tons. Given the lack of conditions for a rapid resumption of maritime transport, analysts see no grounds for domestic prices to rise in the near future.

Source: Grain Exchange.