In the next two weeks in Ukraine, we can expect a growing demand for rapeseed and oil prices increase. But the processors firstly expect large batches from 1,000,000 tons.

This was announced by the analytical center "PUSK", created within the framework of the UAC, during a weekly briefing for farmers nn November 8,

"Rape stocks in Ukraine amount to 1.3-1.4 million tons. This is significant comparing to the last year. But the rapeseed demand is growing.

The activation of the market started last week. Demand for rapeseed is returning primarily from the EU, futures are rising. The key reason is the rise in global rapeseed oil prices. 

This automatically returns the demand for raw materials. It can be expected that rapeseed stocks at the end of the season will not exceed 200-300 thousand tons," says analyst Oleksiy Tartakovskyi.

In Ukraine, importers who prefer large batches of rapeseed have also become more active.

"Indicative prices for rapeseed are currently on average $580/t, but in the future are headed for $590-600/t. According to processors, indicative prices are in the range of ₴16,000-16,300/t in central Ukraine. As already mentioned, there is a lot of rapeseed in Ukraine, but it should be understood that the volumes are scattered throughout the country. If a month ago it was possible to find a batch of 1,000 tons from a farmer, now it is difficult, because they mostly offer batches of 200-400 tons. There are few large lots on the market. Therefore, a price of ₴16,500-16,700/ton can be obtained from a processor for a batch of more than 1,000 tons," the analyst believes.

In the near future, we can expect a growing demand for Ukrainian rapeseed from Germany and Poland. Rape is already being bought at 630-640 euros per ton with delivery to Germany. In the current week, prices may rise to EUR 650/ton, as German importers are looking for rapeseed for December-January delivery.