The main news of the week for the grain and oilseeds market is the decision of the Moldovan Cabinet of Ministers to extend for the whole of 2025 the licensing regime (and in fact – blocking) of wheat, corn and sunflower imports. Four farmers’ associations, specializing mainly in field crops, proposed to introduce licensing also for rapeseed. But this did not happen. And this is a very important circumstance in the context of the emerging configuration of the Moldovan market of oilseeds in 2025-26 marketing year.
In the last decade and a half rapeseed in Moldova is exclusively an export commodity. Inside the country this production was not used in any way. That is, blocking its import to Moldova was meaningless earlier. But in spring of this year, the system-forming information began to circulate: after a very long break, the largest enterprise in the sector, Floarea Soarelui SA (Balti), is preparing to resume rapeseed processing.
In other words, a new channel of guaranteed sales of large quantities – possibly hundreds of thousands of tons – of this oilseed raw material is opening for farmers and intermediaries, as well as for traders of the “second echelon”. However, sales to domestic processors will be guaranteed only if they have no alternative opportunity to buy rapeseed. In particular, in neighboring Ukraine. And the Moldovan government has decided not to take away this opportunity from Floarea Soarelui SA from the start of the season.
In Ukraine, as well as in the whole Europe, this year will be harvested a large, and possibly – a very large rape crop. Moreover, in our neighbors, as well as in our country, this year due to a relatively cool spring and rains in early summer rape harvest will begin later than in some European countries. That is, “news from European fields” about a rich rape harvest will put pressure on the future price of Ukrainian rapeseed earlier and more strongly. Under such a situation, Ukrainian farmers and traders, logically, will try to sell this production as soon as possible to anyone and anywhere, among other places – to Moldova. Moreover, not really focusing on the price level, because by Ukrainian standards, a hundred thousand tons of raw materials sent to a solid processor nearby is not a volume.
Moreover, the war between Israel and Iran, according to information at the moment, unexpectedly quickly ended, which was immediately reflected in oil quotations. By the middle of the current week on the European exchanges, the prices of August futures for rapeseed – the basis of biodiesel – fell by 1.3% on average. The decrease is not great yet, futures prices for rapeseed have been hovering around the symbolic mark of 500 euros/ton for a month already. But, in any case, the decrease, and even in the conditions of impending peace in the Middle East and high rapeseed harvest in Europe, is an alarming signal for producers of this oilseed.
In this regard, it is especially worth considering that rapeseed is a specific small-seeded crop, difficult to harvest, logistics and, even more so, storage. Many will try to “close this issue”, including – to get money for shipped rape, until October.
Based on the totality of these circumstances, market participants agree that Moldovan rape producers and processors should restore relations, agree on price and terms of cooperation before the start of the harvesting campaign.
