The rapeseed market is expecting further price growth, which is supported by the slow pace of the harvest campaign in Ukraine, as well as news of a low canola harvest in Canada. Ukrainian farmers are restrained in sales due to the current low purchase prices.

This was discussed on July 11 during a weekly briefing organized by the analytical center of the PUSK cooperative, created within the UAC.

"Currently, the export of rapeseed is lagging. We have contracted 500,000 tons of Ukrainian rapeseed for July and 700,000 tons for August. In fact, as of the end of June, Ukraine has supplied only 100,000 tons of rapeseed. The country has harvested only 300,000 tons of rapeseed, but the main reason for the low exports is the price impact.

Today, rapeseed is not earning as much money as it was last year, and farmers are restrained in their sales, selling small batches. Conventional prices for non-GMO rapeseed average 370-375 euros per ton. But prices are rising every day, so farmers are in no hurry to sell. As a result, there is a severe shortage of rapeseed supply on the market, and trader’ contracts are "burning". Nevertheless, in July, we may see a "price bottom" under the pressure of harvest, but prices will continue to rise," the analytical department of the PUSK cooperative believes.

According to analysts, prices will be supported by news from Canada, where a significant reduction in harvest is expected due to the weather.

"Canada is a key producer and processor of rapeseed in the world. If there is a decline in production there, prices will rise significantly," PUSK cooperative analysts explain.

"Rapeseed has good prospects for the coming months. In early August, we can expect the price to reach 400 euros per ton on CPT, river ports. Germany contracts rapeseed for September at a price in the range of 430-440 euros/t.