Chaos in Rapeseed Market – Nearly EUR 1,000 per Ton

There’s a real chaos in the rapeseed market. The prices keep growing, after they grew about EUR 70 in the previous three trading days. The planned May agreement was included on Tuesday afternoon in continuous trading at the price of EUR 980 per ton, which is only slightly below the threshold of EUR 1,000, reported Agrarheute. The new harvest was traded at EUR 778.50 per ton.

It is to be expected that the sowing of this crop in Ukraine at the end of the summer of 2022 will be very complicated considering the military conflict and the shortage of input and fuel.

An analyst at the company Agritel said that the prices of rapeseed are growing in the period of the overall growth of the prices of edible plant oils and crude petroleum. Edible sunflower oil is among them, since Russia and Ukraine are the two leading producers of that plant in the world. Ukraine alone exports over 50% of the sunflower oil. It is not easy to predict the further development of the situation in the light of the current events.

In this marketing year, until March 13, Europeans imported a total of around 3.7 million tons of rapeseed. Around 1.6 million tons, or 44%, comes from Ukraine, and 1.2 million tons, or 34%, comes from Australia. Imports from Canada account for 15%, and smaller quantities arrived from Moldova and Serbia.

The biggest European importer is the Netherlands, whose imports currently amount to around 833,000 tons. So far, Germany has imported 795,000 tons from third countries, whereas France imported 782,000 tons.

Smaller import from South America

The situation is further complicated by the higher Argentinian export fee on soybean meal and soybean oil. Indonesia has decided to increase its export fees in order to protect its local market. In Brazil, a lower yield of rapeseed is expected. The local agricultural administration Conab has reduced its estimate of the harvest of the Brazilian soybean by an additional 2.7 million tons to 122.8 million tons, compared to last year, when the harvest yield was 138.1 million tons.

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