The prices for soybeans in Ukraine fell by 1.5 thousand UAH/ton during the month and dropped to 16.5 thousand UAH/ton, due to the fall in world prices, according to the analytical cooperative “Start”, created within the framework of the All-Ukrainian Agrarian Council (AAC).
“In Ukraine, the prices for soybeans have been actively declining over the past month. If until the end of January, processors were buying soybeans at the price of more than 18 thousand UAH/ton, at the end of January, the price tags do not exceed 16.5 thousand UAH/ton. The price reduction of Ukrainian soybeans is due to the fall of the world prices for the oilseed,” the analysts stated.
According to their information, Ukraine exported 290 thsd tonnes of the contracted volume of 300 thsd tonnes in February. Traders find it difficult to sell Ukrainian soybeans for export due to its high price, the report said.
The key markets for Ukrainian soybeans, which usually account for 50-60% of exports, are Turkey and Egypt. However, while in these countries a ton of Ukrainian soybeans has always been $10-15 cheaper than Brazilian soybeans, now the prices have not only leveled off, but the prices for Ukrainian soybeans will continue to decline.
“World prices for the oilseed are falling, which is facilitated by a record harvest in Brazil, forecasts of a high yield in Argentina, and large soybean stocks in the United States,” the experts explained.
They predict that if the conditional prices for soybeans on the basis of DAP Poland-Romania are $420/ton, they may decrease to $390/ton by the end of March. In addition, the processors reduced the purchase prices per ton in the range of 16.5-16.8 thousand UAH, by the end of March the price drop may reach 16 thousand UAH.
“Another factor that supports the decline in prices for Ukrainian oilseeds is the fall in prices for soybean meal in the EU. In addition, Poland used to be the main importer, but now this country is not the best trading partner,” Pusk summarized.
