Soybean Prices in Ukraine Remain Record High at the Start of the Season
At the beginning of the new season, there is uncertainty regarding the sunflower and soybean harvests in Ukraine, which keeps prices for these crops at maximum levels. Oil extraction enterprises are striving to fully utilize their capacities in the coming months, taking advantage of the favorable price situation in the oil market.
This is reported by AgroReview
Increase in Purchase Prices for Soybeans
Domestic processors have raised purchase prices for GMO soybeans to 17,400–17,600 UAH/ton, and for non-GMO soybeans to 18,800–19,200 UAH/ton with delivery to the factory. At the same time, the introduction of a 10% export duty on soybeans limits traders’ activity in the domestic market, prompting them to increase prices in foreign currency for the first export batches.
Over the week, export prices for GMO soybeans have risen by $4–5/ton and currently stand at $392–398/ton for delivery in September–October to Black Sea ports. Prices for non-GMO soybeans have increased to $420–430/ton.
International Trends and Influencing Factors
Active sales of American soybeans to the EU, Egypt, and Pakistan create stiff competition for Ukrainian products. If China continues to refrain from purchasing soybeans from the USA, pressure on prices in October–November may intensify.
“September soybean futures in Chicago fell by 2.4% over the week to $372/ton (+5.4% for the month), while November futures dropped by 2.8% to $377/ton (+4%) due to the lack of purchases by China for both old and new soybean crops from the USA, as well as purchases of soybeans from Brazil for delivery in November.”
Traditionally, from September to January, China buys soybeans from the USA, while in other months, it sources from Brazil. Rainfall in southern Brazil contributes to moisture accumulation and allows for earlier planting of corn and soybeans. However, the market is closely monitoring weather conditions in central Brazil, where the rainy season is expected to begin at the end of September, marking the start of planting for the new soybean crop.