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Belarusian commodity exchange posts 1.5-time increase in prices for rapeseed oil
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MINSK, 10 September (BelTA) - Export prices for rapeseed oil have increased significantly at Belarusian Commodity Universal Exchange, the BUCE press service told BelTA.
According to BUCE, since the beginning of the year the price for rapeseed oil sold for export via BUCE has increased almost 1.5 times, which generated $600,000 in additional revenue for domestic producers. According to stock analysts, prices have not yet reached their maximum and will continue to increase in the near future.
“Export quotations for rapeseed oil continue to show high dynamics. For example, in early January of this year the average price for a tonne of first-grade unrefined rapeseed oil fluctuated in the range of $973-992. At the last trading session the price hit $1,412. Domestic products have risen in price by 42-45%. The record increase in exchange prices is associated with the situation on the global market. Due to the poor rapeseed harvest in Canada and Europe, increased consumption in China, the world has faced a pressing shortage of raw materials, which led to an unprecedented increase in quotations for rapeseed oil. By the end of the year, the world's largest processors are unlikely to be able to replenish the raw material stocks. In the short term the imbalance of supply and demand will continue, and rapeseed oil will keep rising in price,” the press service said.
A high level of competition among foreign buyers of Belarusian rapeseed oil has played a role in price setting on the exchange market, along with the external factors.
“Major buyers of rapeseed oil at the commodity exchange are companies from Russia, Ukraine, Lithuania, Latvia, Estonia, Switzerland, the Netherlands, China and Cyprus. During the trading session, six to eight participants can compete for one lot. As a result, the starting price often increases by 10-13%. In other words, the situation is very favorable for exporters, and has a positive effect on the volume of exchange transactions. In January-August of 2021, a total of 36,300 tonnes of rapeseed oil was sold via BUCE for $43.3 million, which was up 2.6 times year-on-year in value terms and 1.7 times in physical terms,” the press service noted.
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