Exports of soybeans may decrease by 30% as a result of the introduction of duties

Last week, the soybean market was affected by export-customs conflicts. This is reported by analysts at Spike Brokers.

Foreign trade activity has virtually stopped, as producers await the final settlement of the mechanism for reimbursement or official exemption from paying export duties. Uncertainty about the rules of operation is holding back the conclusion of new agreements and increasing pressure on domestic prices.

According to preliminary estimates, in the current season, soybean export volumes and foreign exchange earnings may decrease by approximately 30% compared to last year, which will be a direct consequence of the action of the export duty and regulatory restrictions.

Amidst the uncertainty regarding further exports of this crop, demand for Ukrainian soybeans from key importers, in particular, Egypt and Turkey, has fallen significantly.

At the same time, the supply of soybeans on the domestic market increased, as a result of which processors reduced demand prices, although the pace of progress in harvesting this crop was quite slow and there was no significant saturation of the market yet.

Tags: export, soybean, duties, restrictions, Ukraine