According to the updated forecast of APK-Inform Agency, in 2024/25 MY Ukraine may process about 750-800 thsd tonnes of rapeseed, down 20-23% compared with 2023/24 MY.
The decrease in processing compared to the previous season may be due to the lower harvest of the oilseed in 2024 in Ukraine and increased competition between the plants and exporters, given the strong demand for the Ukrainian oilseed from the European companies.
“However, in general, the volumes of rapeseed processing in Ukraine will remain at a rather high level for the industry. In April, market participants reported a significant increase in demand for the oilseed from the new harvest from domestic processing companies, for several reasons. The main ones are the rather good margins of rapeseed crushing and high demand for rapeseed oil,” - said APK-Inform experts.
Moreover, amid the expected deficit of sunflower in summer, rapeseed is the good alternative, as the last year's practice shows.
At the same time, the rapeseed crushing season may start earlier than usual, given the earlier flowering and maturation of winter crops, as well as the expected early start of harvesting.
Thus, domestic rapeseed processing in the “season” may increase significantly, but it may not show a record figure for the whole marketing year, as in the current season, due to the expected stiffer competition for the oilseed amid lower supply.
It should be noted that during the 10 months of the 2023/24 MY Ukraine processed about 950 thsd tonnes of rapeseed, which is a record for the industry.
We will discuss the trends and prospects of the oilseed market of Ukraine, the Black Sea region and the world in general at the international conference VegOils&Meals Trade, which will be held on June 14 in Seville, Spain.
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