by PressRapeseed prices continue to break records: market overview
Rapeseed prices hit new psychological levels
Analysts evaluated the agricultural market. It turned out that rapeseed prices rose to the highest for the last 20 years. And they are not going to stop and experts warn that it is necessary to get ready for the new psychological level.
The main and large supplier of rape to the EU countries is Ukraine. The reduction of export volumes in Canada helped the country to achieve leadership. Here the stocks of last season’s crop decreased faster than the forecasted period, and the harvesting of the new one is still going on. As for another strong supplier, Australia, it has not yet opened a sale on harvested rapeseed.
Rising crop costs are stopping importers from increasing purchases. The latter includes the European Union, which was not very active in buying rapeseed last season. The EU began to increase imports only after Canada offered a new crop, in addition, it also bought products in Australia, for which deliveries to Europe are the main market for products.
In addition to the European Union, a major importer of oilseeds is China. The latter is still waiting for a new crop from Canada. In addition, buyers from Japan, the UAE and Pakistan are waiting for the products from the state. Analysts expect importers to fight quite seriously for supplies, which could lead to a new price increase on the world market.
In the current season the volume of rapeseed imports to the territory of the European Union amounted to 1.31 million tons. For comparison, in the last marketing year this figure was at the level of 2.05 million tons. Soybean was bought at 3.62 million tons, palm oil — 1.66 million tons, and in the previous period imports amounted to 2 million tons. Supplies of soybean meal to the EU were at the level of 4.38 million tons, previously this figure was about 5.53 million tons.
According to analysts, the Ukrainian market has seen a significant increase in rapeseed processing rates. Usually the country processes quite a small amount of the crop, about 12% of the total volume of products on the domestic market. However, this season we have seen the increased demand for rapeseed oil. The cost of raw material on world exchanges also reached record values, which intensified the volumes of processing. They became the largest in the last 3 years and amounted to 284 thousand tons. This figure is only 0.3% behind the results of the 2018/2019 season, which is considered a record for the country. However, when compared to 2020/2021 here growth is observed at the level of 48%.
Despite the good rates of processing, most of the harvest of Ukrainian rapeseed is exported, which is a more profitable option for the sale of products.