Ukraine. Oilseed crop in 2018/19 season

10.01.2018

In Ukraine, the close of 2017 featured the adoption of an important and, it’s safe to say, momentous decision for the entire oilseed sector of the country’s agriculture. In January, there came into force a law of Ukraine postponing the cancellation of budgetary VAT refunds for rapeseed exports till January 1, 2020 and those for soybean exports till September 1, 2018. At the same time, the cancellation of VAT refunds for sunseed exports comes into force from March 1, 2018. This measure was dictated by the need to adapt all market participants to the new conditions.

Taking into account the current situation, UkrAgroConsult returns again to the prospective cropping pattern for the 2018 harvest and oilseed crop forecasts for the next 2018/19 season.

According to preliminary estimates made by UkrAgroConsult, 2018/19 oilseed plantings in Ukraine will remain at last year’s level.

The sunflower and rape shares in the cropping pattern will gain slightly, while soya acreage will shrink.

The rapeseed market condition and expected growth of this crop’s margin have been stimulating Ukrainian farmers to expand rape plantings for a second consecutive year. So, domestic rapeseed price in Ukraine has been holding above sunseed prices for the last two seasons. This secures stable revenues for rapeseed growers.

The official data on winter rape plantings surprised the market as they exceeded initial estimates. As of the end of 2017, the state of winter rape plantings is generally assessed as the best in four seasons. In case of a higher survival rate of winter rape, even a crop increase can be expected, reports UkrAgroConsult.

Full version of the article is available to subscribers for weekly market report “Black Sea Vegoils” and “Online market review” by UkrAgroConsult.

 

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