Increased Chinese demand pushed up prices for Ukrainian soybeans

Over the past week, the soybean market in Ukraine has shown a moderate increase in prices, especially in the segment on the western border. The main driver was the activation of demand from China, as well as low rates for container transportation. This is reported by White Brokers, writes Latifundist.com.

This made container exports more attractive, which, in turn, supported prices. An additional factor was the return to the market of other Asian importers.

Prices for GMO soybeans on DAP-port terms were at around $465/t, while on the western border they were $1-2/t higher.

Buyers focused on container shipments formed a premium to the market and actually dictated the price. They became the key drivers of liquidity in this segment.

At the same time, the market remains relatively narrow and dependent on individual sales channels.

On the world market, Ukrainian soybeans were offered at the following prices (CIF):

• Egypt — $480/t,
• Turkey — $473/t,
• Spain — $480/t,
• Italy — $479/t.

For comparison, soybeans from the USA were traded at $505–513/t, from Brazil — $470–485/t, from Argentina — $476–484/t depending on the direction.

The supply on the market remains sufficient, but sellers are in no hurry to intensify sales, responding to the improvement in prices, brokers note.

Further market dynamics will largely depend on the cost of logistics and demand from China, which remains a key factor for this segment.

Tags: soybean, Ukraine, China, prices