Season 2021/22 rapeseed processing heads for another all time high in Ukraine
In July-September 2021/22, 383.3 thou. t of rapeseed was processed by oil crushing plants in Ukraine, 58% above the comparative period of the previous season. This is a record processing volume for the given period of time, the APK-Inform consultancy reports.
Experts say that the increased processing in the current season is explained by several factors, with the main ones being the strong demand and attractive prices for rapeseed oil in the world market.
"Demand prices for Ukrainian rapeseed oil since the start of 2021/22 were almost all the time at a record level for the segment on all supply bases, and in early November reached the maximum 1430-1450 USD/t DAP," the message reads.
The processing season for rapeseed is almost over, APK-Inform estimates. Within three months, about 89% of oilseeds projected by the consultancy for the marketing year was processed.
Read more: Top 10 rapeseed processors in Ukraine in July-August 2021/22
"Rapeseed processing the 2021/22 season may reach a record for the segment of 431.5 thou. t (+37% YoY). The previous maximum in rapeseed processing was reached in 2019/20, about 394 thou. t," analysts comment.
Early November 2021, market participants reported a significant reduction in rapeseed stocks in Ukraine and, as a consequence, a gradual decrease in demand of both processors and traders for Ukrainian rapeseed caused by the insufficient volume to form large export consignments.
In 2021, rapeseed production in Ukraine totalled 2.9 mln t on 1.01 mln ha. The average yield stood at 2.86 t/ha. For the country's next crop, rapeseed was 99% planted as of Nov. 8.