Ukraine has reduced the rate of rapeseed exports by 1.8 times – to 220,000 tons per month against the norm of 350,000-400,000 tons, according to the analytical cooperative “Pusk”, established within the framework of the All-Ukrainian Agrarian Rada (VAR).
“We have a decrease in the export rate for rapeseed. Ukraine needs to export 350,000-400,000 tons monthly, but exports exceed 220,000 tons. For September, Ukrainian rapeseed is contracted on forwards with delivery to Romania, Lithuania, Germany exclusively by road and rail. At small river ports forwards are not arranged, only spot market works there. Rapeseed supply is low”, – analysts note.
According to their data, processors gradually pull up the level of purchase prices to 14 thousand UAH/ton, in some regions price tags are 14.2 thousand UAH/ton. Large batches – 2-3 thousand tons of rapeseed – are exported to the EU, which forces domestic processors to raise prices.
One of the factors of price growth on rapeseed, according to analysts, is the news from Canada – the key world producer of canola, about the decrease in the volume of gross harvest.
“According to the USDA report, there was a decrease in the forecast of rapeseed harvest from Canada by 1 million tons. But we can expect further declines in the forecast due to weather conditions. The volume of oilseed production in Canada will determine further price trends in the global market,” the WAR explained.
In the coming week, the conditional prices at small river ports may rise to $380-390/tonne, purchase prices of processors – up to UAH 14.4 thousand/tonne, experts predict.
Astarta” agricultural holding, the largest sugar producer in the country, has started harvesting wheat and rapeseed in Poltava region. The harvesting process in the Western region will start in the middle of July, the press service of the holding announced on Facebook on Friday.
According to the message, Astarta plans to harvest early grains from an area of almost 57,000 hectares in 2023, including winter wheat from 43,000 hectares.
“Despite the existing challenges – more than 400 mobilized workers, a serious increase in the cost of production resources, the work in the mode of constant air rapture, the possibility of overlapping reaping of winter rape and wheat – we have qualitatively and timely prepared for harvesting. We carried out repairs, the necessary amount of agricultural equipment is ready, we have good condition of crops and good yield potential. And most importantly, the people – there are preserved and well prepared teams “- said the director of agricultural production Vadim Skrypnyk.
Astarta” said that they managed to sell almost the entire harvest last year, so grain elevators of the holding are ready to receive the new harvest. During the season of 2023, the harvesting will be accompanied by the implementation of digital products AgriChain, in particular the new module of AgriChain Logistics, aimed at the automation and efficient management of all processes.
“Together with agronomics, logistics, elevator and commercial services of “Astarta” we developed a mathematical model that comprehensively solves the transport task and allows making the most optimal plan of product placement on the company’s own and third-party elevators or, if necessary, involve reserve storage options,” – explained AgriChain Director Natalia Bogacheva, emphasizing the importance of this issue during the harvesting campaign.
According to her information, the IT-division reinforced the control system of collection, transportation and delivery to the place of harvest unloading, and it also brought the transportation routing to a new level, the system of access to loading trucks via NFC technology, the digital control system “friend-or-foe”, the notification system and rapid response to abnormal situations on the routes.
During the current harvesting campaign it is also planned to implement hourly dispatching of product delivery from the field to the storage locations through the work orders system, which will help to avoid queues, idle time, increase vehicle turnover and choose the best route.
“Astarta is a vertically integrated agro-industrial holding operating in eight regions of Ukraine. It consists of six sugar factories, farms with land bank of 220 thousand hectares, dairy farms with 22 thousand cattle, oil extraction plant in Globino (Poltava region), seven elevators and biogas complex.
Agroholding increased its net profit in 2021 14 times compared to 2020 – up to EUR 122.5 mln, EBITDA – 1.8 times, up to EUR 201.5 mln. Its revenue increased by 18.2% up to EUR 491.35 mln, one third of which (EUR 170 mln) was generated by sugar production and sales.
The low average yield of rapeseed of 1.2-1.3 tons/ha will not allow Ukrainian agrarians to get a high gross of oilseed crop, the yields may level out in the future, but there will not be a record harvest, said the analytical cooperative “Pusk”, created within the All-Ukrainian Agrarian Rada (AAR).
“Rapeseed prices have started to rise sharply, and this trend will continue both in Ukraine and around the world,” the analysts said at a weekly briefing Tuesday.
According to their information, in small river ports the indicative rapeseed prices for a week increased from 330 euro/ton to 345 euro/ton. Supply of Ukrainian rapeseed was low last week. The situation will not change quickly, as the harvest has recently started.
Analysts expect indicative prices in small ports to grow to € 348 / ton by the end of the week, on the terms of CPT – up to € 355-360 / ton in the coming weeks.
Processors sounded purchase prices for rapeseed in a wide range, depending on the region – 12300-13200 hryvnia / ton, the lowest mark in the Odessa region, stated the “Pusk”.
The world prices for biodiesel are rising again, vegetable oils are becoming more expensive, so rapeseed will rise in price at the exchanges. But July and early August will be unfavorable for sales under the pressure of the new harvest, analysts summarized.
Sunflower stocks in Ukraine as of December 1, 2018 totaled 7.778 million tonnes, which is 15.4% more than a year ago, the UkrAgroConsult analytical agency has reported, referring to the State Statistics Service of Ukraine.
According to a posting on the website of the agency, as of December 1, 2018, crushing enterprises cut soybean stocks by 0.8%, to 1.128 million year-over-year.
Rapeseed stocks as of December 1, 218 were 14.1% lower than a year ago, being 199,200 tonnes.
