Ukraine. Rapeseed oil exports hit a four-year low

14.05.2018

Production. Rapeseed oil production is persistently ahead of last season. The first nine months of the current marketing year 2017/18 saw a 23% year-on-year rise in production, reports UkrAgroConsult. So, large and medium crushers produced 81.2 KMT of rape oil in July-March 2017/18 against 65.8 KMT in the same period last season.

UkrAgroConsult notes that this resulted from active rapeseed processing in August-October 2017. Rape oil production declined dramatically in the following five months of the season, to at most 1 KMT a month. Rape oil production fell to 0.229 KMT in March 2018, down 71% from February 2018 and down 84% from March 2017 (1.417 KMT). 

However, rape oil output in July-March 2017/18 is still higher than in the whole of MY 2016/17 (66.7 KMT).

Exports. Ukrainian rape oil exports decreased to 0.2 KMT in March 2018 versus 0.5 KMT in the previous month and 1.6 KMT in March 2017. A total 60.4 KMT of the commodity was supplied to foreign markets in July-March 2017/18 that is a four-year low and almost 11% less than in the same period last year (67.8 KMT). As a reminder, this situation is developing against the background of expanding rapeseed exports.

As before, the main end market for Ukrainian rape oil is European countries, which absorb over 86% of its total shipments. However, their number decreased this season. In addition, China and Malaysia continue stepping up rape oil purchases from Ukraine and already occupy market shares of 13% and 1%, respectively.

Further prospects of the Black Sea oilseeds/vegoils market will be discussed at the VI International Conference “Black Sea Oil Trade”, which will take place on September 20, 2018 in Hilton hotel, Kiev, Ukraine.

In 2017 International Conference «Black Sea Oil Trade» attracted 250 delegates from 25 countries and 150 companies. Conference participants are usually represented by producers and crushers of oilseeds, traders, enterprises for deep processing of vegetable oils, investment companies, banks, law, shipping, brokerage, insurance and surveyor companies.

 

UkrAgroConsult

Readers choice: TOP-5 articles of the month by UkrAgroConsult