Ukraine does not have time to deliver the contracted volumes of rape seed due to logistics

As of October 30, Ukraine exported 424,000 tons of rapeseed, but is lagging behind the contracted volumes due to logistical difficulties.

As of November, 60,000 tons of Ukrainian rapeseed oil were sold to China, which contributed to the intensification of domestic demand from processors, according to All-Ukrainian Agrarian Council.

“Ukraine does not have time to deliver the contracted volumes of rape because of logistics: some farmers did not receive wagons on time. Because of corn deliveries to Romania, there were queues and delays of wagons. In addition, the work of Odesa ports has intensified – and there is not enough wagons. Liquidity on the market is low, conditional prices on the basis of CRT seaports amount to UAH 14,000 – 14,500/t. It should be noted that rapeseed is mostly exported by road and rail to the Czech Republic and the Baltic States, and not by sea,” experts say.

In Ukraine, rapeseed volumes are concentrated at the level of 500,000 tons. At the same time, sellers are in no hurry to sell oil, they can postpone sales until December in anticipation of higher prices.

However, demand for rapeseed on the domestic market from processors is growing.

“At the moment, there is an active demand for rapeseed oil from processors, because as of November, about 60,000 tons of rapeseed oil were sold to China. Purchase prices are in the range of UAH 12,900-13,200/ton. We expect a slight growth trend – plus 200-300 UAH/ton in the next two weeks. As already mentioned, demand from processors and exporters is growing,” the experts summarized.

The photo is illustrative.