European market offers a premium for Ukrainian non-GM soybeans

Ukraine’s soybean market continues to show a noticeable price advantage for non-GM soybeans shipped westward. According to Spike Brokers, non-GM soybeans are priced at $470/t FCA Chop, compared with $440/t CPT ports. This gives shipments toward the western border a premium of around $30/t.

For GM soybeans, the gap between the two destinations is considerably smaller. Prices stand at around $420/t CPT ports and $435/t FCA Chop. Ukrainian crushers raised their purchasing price for GM soybeans by only $5/t over the week to $425/t.

Meanwhile, the global soybean market received much stronger support. In the week to August 6, the US sold 1.76 mln tons of new-crop soybeans, of which around 1.45 mln tons were purchased by China. Against this backdrop, November soybean futures on CBOT gained 16.25 cents over the week to 1,192.5 c/bu.

However, stronger Chinese buying and rising futures have so far had only a limited impact on Ukraine’s physical soybean market. For non-GM soybeans, the European direction remains more attractive, with prices at the western border trading at a notable premium to port levels.

Tags: prices, soybean