By Pavel Polityuk, Michael Hogan and Rod Nickel
KYIV, April 20 (Reuters) – Merchants have offered two shipments of Ukrainian rapeseed this month to Canadian consumers, a extremely uncommon commerce that signifies the affect of spiking international oilseed demand, market sources mentioned.
Gross sales had been comprised of Ukraine’s 2021 harvest for August cargo, with two shipments every of as much as 30,000 tonnes spoken of, merchants mentioned.
Canada is the world’s largest exporter and producer of the rapeseed variant canola, and its processors hardly ever import provides throughout such lengthy distances. However this 12 months, surging Chinese language demand for vegetable oil and animal feed has emptied North America’s farm bins and pushed canola and soybean costs larger.
“The gross sales had been apparently made due to tight canola provides within the Canadian home market,” one European dealer mentioned. “I’ve by no means seen such offers earlier than.”
The gross sales come as Canada’s canola stockpiles are anticipated to dwindle to an eight-year low by midsummer, simply earlier than the following harvest.
“Canadian canola exports have been very sturdy in previous months and there have additionally been heavy gross sales to China of canola meal and canola oil together with good home demand for biodiesel,” the European dealer added. “It seems to be like some home provide gaps are rising.”
With provides low, ICE canola futures stay close to document highs set in February.
“Provides need to be close to dire to discover provides out of the Black Sea/Ukraine,” mentioned Phil Speiss, a Canadian commodity futures dealer at RBC, including that the Canadian purchases from Ukraine are the primary in reminiscence.
Canada is the world’s largest producer of canola, however the present scarcity might drive home crushers to decelerate, Speiss mentioned.
Canada has exported 21% extra canola by way of licensed handlers since August 2020, the Canadian Grain Fee mentioned in April, serving to to deplete stockpiles. China has almost doubled year-to-date purchases.
Ukraine’s APK-Inform agriculture consultancy mentioned final week export costs for this 12 months’s Ukrainian rapeseed had risen by $35 final week on fears over crop situations throughout Europe and a doable smaller sowed space in Ukraine.
(Reporting by Pavel Polityuk in Kyiv, Michael Hogan in Hamburg and Rod Nickel in Winnipeg, enhancing by Louise Heavens and Bernadette Baum)
(([email protected]; +49 172 671 36 54; Reuters Messaging: [email protected]))
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.