The rapeseed market is experiencing a sharp decline in prices, which may last up to three weeks. This is due to a technical correction on the stock exchange, but in the long run, high prices for this oilseed are expected.

This issue was discussed on June 18, 2024, at the analytical briefing of the First Ukrainian Agricultural Cooperative (FUAC), created within the UAC.

"There are ranges in the market now. The exchange price of rapeseed was recently at about EUR 470 per ton. However, yesterday there was a sharp decline in prices for grains and oilseeds, in particular, rapeseed lost EUR 10-11 per ton. This also affected the Ukrainian market, causing further price declines. As of the morning as of June 17, seaports offered a conditional price of EUR  435 per ton on CPT basis, which dropped to EUR 425 per ton in the afternoon," the FUAC said.

Analysts predict that the price on the exchange may fall further in the near future. The downward trend is expected to last up to three weeks.

"Nothing has changed fundamentally - the volume of rapeseed has not increased, and the current price decline is due to a technical correction on the stock exchange. In the near future, the stock prices are expected to decline to EUR 440-450 per ton, but in the long run, the price should turn up. We can expect prices to return to at least EUR 500 per ton in October-November.  For farmers who did not have time to fix current prices, it may make sense to hold back sales until September-October in order to sell rapeseed at a more favorable price later," the analytical department of the FUAC believes.

Also, the analysts presented new data on rapeseed production and processing in Ukraine for the season 2024.

"According to the USDA, the production of rapeseed in Ukraine for the season 2024 is estimated at 3.7 mln tonnes. However, Ukrainian traders and analysts estimate this figure higher - from 4 to 4.2 mln tons. This difference affects processing estimates: USDA predicts processing at the level of 400,000 tonnes, while Ukrainian processors plan volumes in the range of 500,000-600,000 tonnes of rapeseed," the FUAC added.