Soybean Prices in Ukraine Remain Low Due to Decreased Export Demand
Exports of soybeans and rapeseed from Ukraine remain complicated due to an unregulated procedure requiring producers to pay a 10% “guarantee payment to customs.” These funds serve as collateral for customs and are supposed to be returned to producers within 30 days after export.
This is reported by AgroReview
Bureaucratic Barriers for Exporters
To obtain the necessary export certificate from the Chamber of Commerce and Industry (CCI), producers must prepare about 12 different documents. In determining the volume of harvested products, the CCI considers a maximum yield of no more than 3.5 tons per hectare. Such complex procedures reduce farmers’ interest in foreign markets, and more producers are choosing to sell soybeans and rapeseed to domestic processors for hryvnias.
Price Trends and Market Situation
Over the past week, export prices for GMO soybeans remained stable at $388–390 per ton (16,800–17,000 UAH per ton), while non-GMO soybeans were priced at 18,000–18,200 UAH per ton (420–430 USD per ton) delivered to Black Sea ports. However, the number of traders making purchases continues to decrease due to increased competition in the global market and a trend towards falling prices. Favorable weather conditions for planting in South America and active harvesting in the USA are putting pressure on prices.
November futures for soybeans in Chicago fell by 1.6% over the week to $370 per ton, and by 5.3% over the month. This decline is linked to active harvesting (about 60% of the area has already been harvested) and low export rates of American soybeans. From September 1 to October 9, the USA exported 4 million tons of soybeans, which is 26% less than in the same period last year, as China refrains from purchasing American products.
“The procedure for exporting soybeans and rapeseed from Ukraine without customs duties for producers is still unregulated, and for export, customs requires producers to pay a 10% ‘guarantee payment to customs’ as collateral, promising to return these funds within 30 days after export.”
As of October 9 in Ukraine, 2.7 million tons of soybeans have been harvested from 56% of the area, with an average yield of 2.28 tons per hectare, while last year at this date, 4.8 million tons (80% of the area) were harvested with a yield of 2.29 tons per hectare. This week, dry weather is expected, allowing farmers to accelerate the harvesting of soybeans and sunflowers, increasing market supply.
During the week, processors offered 16,500–17,000 UAH per ton for GMO soybeans and 18,500–18,700 UAH per ton for non-GMO soybeans (delivered to the factory, with protein content of 39-40%). In the event of a significant increase in soybean supply, processors may limit purchases, as they have already built up substantial sunflower stocks at high prices.
Improved weather conditions for soybean planting in South America are contributing to increased harvest forecasts, which adds pressure on global prices and activates the supply of old crop soybeans to the market. According to estimates from the ANEC agency, Brazil plans to export 7.3 million tons of soybeans in October, which will meet China’s demand, as it is currently not resuming purchases of American products.