Rapeseed Prices in Ukraine Drop Following Reduced Demand
Ukrainian Rapeseed Prices See Sharp Decline
Rapeseed prices at Ukrainian Black Sea ports have fallen significantly this week, primarily due to lower demand from traders and declining global stock market quotations. Reduced rapeseed stocks within Ukraine have also added to the downward pressure.Prices dropped significantly, bringing the range to $0,52–$0,53 per kg. This decrease aligns with a 7% drop in rapeseed prices on the Paris Stock Exchange.
Global Market Weighs on Rapeseed Futures
On the Paris MATIF exchange, February rapeseed futures fell by 1.5% to $0,53 per kg. Much of the speculative gains from the previous month have been erased, following the collapse of canola prices in Canada.The drop in Canadian canola prices was triggered by former U.S. President Donald Trump’s announcement of a potential 30% tariff on Canadian goods. On the Winnipeg exchange, January canola futures fell by 8.6% for the week, closing at $0,41 per kg. This marks a staggering 10.3% monthly decline, raising expectations of cheaper canola supplies in the EU, which could put additional pressure on rapeseed prices.
EU Processing Volumes Fail to Support Prices
The EU has increased its rapeseed processing volumes, but this has not been enough to halt the decline in prices. According to Fediol, the EU processed 1.69 million tonnes of rapeseed in October 2024, up from 1.55 million tonnes in September and 1.63 million tonnes in October 2023.Year-to-date, the EU has processed 16.5 million tonnes, compared to 15.9 million tonnes during the same period last year. Despite this increase, rapeseed prices remain under pressure due to oversupply and cheaper alternatives entering the market.
Conclusion: Global Trends Shape the Rapeseed Market
The decline in Ukrainian rapeseed prices reflects broader global market trends, including weaker demand, reduced oil prices, and increased competition from cheaper alternatives like Canadian canola. As weather conditions and geopolitical factors continue to influence supply and demand, traders and farmers should prepare for a challenging season ahead.Click here to reach our trading platfrom CMBroker
