Ukraine has officially harvested 3.7 million tons of rapeseed. Prices for the oilseed are supported by the news from Canada about the decline in the gross harvest there.

This was discussed on August 15 during a weekly briefing organized by the analytical center of the PUSK cooperative, created within the UAC.

"Canada is a key producer of canola in the world, but a significant decrease in the gross harvest of the oilseed is expected: to 13-16 million tons. According to the USDA report, there was a decrease in the forecast of rapeseed harvest from Canada by 1 million tons, but we can expect further decrease in the forecasts due to weather conditions. Further price trends in the global market will depend on the production volumes of the oilseed in Canada," the analytical department of the PUSK cooperative noted.

 The Ukrainian market is already experiencing a global trend of rising prices for rapeseed.

"We have got a slowdown in exports of rapeseed. Ukraine needs to export 350,000-400,000 tons per month, but exports are a bit higher than 220,000 tons. As of September, Ukrainian rapeseed is contracted under forward contracts for delivery to Romania, Lithuania, and Germany exclusively by road and rail. Forward contracts are not concluded at small river ports, where only the spot market operates. The demand of rapeseed is low. Processors are gradually raising the level of purchase prices to 14,000 UAH/t, and in some regions the price tags reach 14,200 UAH/t. The large batches of 2,000-3,000 tons of rapeseed are sent to the EU, which makes the domestic processors to raise the prices," the analysts explained.

According to the forecasts, in the next week, the conditional prices at small river ports may increase to 380-390 USD/t, and the purchase prices of processors - to 14,400 UAH/t.