In Ukraine, the rapeseed market is facing serious problems

In Ukraine, the rapeseed market faces serious problems, in particular, unprofitable trade and price instability. In August, the country exported 878,000 tons of rapeseed, and another 580,000 tons are planned to be exported in September. However, traders are cautious in dealing with canola due to low returns, particularly in July and August, when most trades closed at a loss. Meanwhile, farmers were able to make a profit from growing rapeseed.

Analysts of the agricultural cooperative "PUSK", created within the framework of the All-Ukrainian Agrarian Council (VAR), reported on the situation on the rapeseed market. As ProAgro Group reports, rapeseed purchase prices in Ukraine remain under the pressure of unstable global market conditions.

Last week, on the Euronext exchange, rapeseed prices fluctuated between 450-470 euros per ton. Analysts note that if prices do not rise to 475-480 euros per ton in the near future, the market may return to the mark of 450 euros per ton. This may lead to a decrease in domestic purchase prices in Ukraine.

At the moment, purchase prices in Ukraine range from 22.5 to 23 thousand hryvnias per ton. However, in the event of a further drop in prices on European exchanges, purchase prices may drop to 20-21 thousand hryvnias per ton. This is a serious threat to Ukrainian traders who have already faced financial difficulties.

In addition, the canola market remains influenced by expectations for the upcoming season. It is known that September and October will probably pass in a downward trend. The highest canola prices tend to be recorded between January and March, so those who choose not to sell canola now may be wise to hold on to stocks until the winter season.

In general, the situation on the rapeseed market in Ukraine is complex and will require careful monitoring and adaptation to changing conditions both on the domestic and global markets.