Competition between rapeseed processors and exporters will intensify - expert

Competition between Ukrainian rapeseed processors and exporters will intensify in 2024/25. This was reported by Anna Platonova, senior price analyst of the market of oil crops and their processing products in the Black Sea region of Fastmarkets Agricensus, IA APC-Inform reports.

 

According to her, the reason will be the lack of rapeseed on the domestic market. Therefore, exporters are already ready to offer higher prices for oil.

 

At the same time, Spike Brokers said that currently rapeseed prices are "stiff" in anticipation of a pre-season rally or seasonal correction.

 

The latest indications of buyers, harvest 2024:

 

FCA Ukraine (border) — €380-385/t;

DAP Bulgaria (center) — €430-435/t;

DAP Latvia (center) — €440-440/t;

DAP Germany (ex.) — €440-445/t.

As Alla Platonova added, the gross harvest of rapeseed in Ukraine this year will decrease by approximately 20% compared to last year and will amount to 3.5-3.8 million tons. A decrease in yield will occur due to unfavorable weather conditions during the growing season of plants.

 

"At the same time, the difference in the estimation of rapeseed processing volumes in the new season ranges from 700,000 tons to 1.3 million tons. According to the results of our surveys, about 12 Ukrainian factories plan to process this culture. "Competition for raw materials between processors and exporters will definitely grow, since, in addition to the decrease in the harvest in Ukraine, a decrease in the production of rapeseed in Europe is also predicted," concluded Anna Platonova.