Analysts have raised concerns that traders are engaging in artificial price manipulation within Ukraine’s rapeseed market, creating downward pressure on purchase prices ahead of the introduction of an export duty law. The First Ukrainian Agricultural Cooperative (FUAC), a key player in the country’s agricultural sector under the Ukrainian Agri Council (UAC), reported that 27,000 tonnes of new crop rapeseed were exported as of July 21. While these exports represent a significant portion of the market, the price cuts are seen as unjustified given the current market conditions and the lack of any underlying economic factors that would support such a move.
The FUAC has highlighted that these artificially low prices could undermine the competitiveness of Ukrainian rapeseed in international markets, potentially affecting farmers’ incomes and the overall stability of the agricultural sector. Industry experts are now closely monitoring the situation as the export duty law approaches, with fears that such practices may be exacerbated before the law comes into effect. The potential introduction of export duties is expected to further complicate the market dynamics, raising concerns about how traders might respond in the lead-up to the policy change.
As the market continues to be influenced by these artificial price pressures, stakeholders are urged to closely analyze the broader implications for Ukraine’s agricultural economy. The situation underscores the need for regulatory oversight to ensure that market participants act in a manner that protects the interests of farmers and maintains the integrity of the agricultural supply chain.