Price of soybeans may rise sharply in the near future

The current price ratio between soybeans and corn demonstrates a significant underestimation of soybeans, which creates the prerequisites for a change in the market trend. Analysts expect that in the short term the price of soybeans will begin to grow. This is reported by the analytical department of the agricultural cooperative PUSK, created within the VAR.

“The first signals of a possible reversal of the trend in soybeans are already being recorded on the American stock market. Now the ratio of soybeans to corn prices has dropped to the level of 2–2.2, which acts as a market indicator of future growth. Historically, it is at this ratio that soybean prices begin to demonstrate upward dynamics,” analysts note. In Ukraine, in parallel with global trends, the structure of crops is changing: farmers are partially reducing the area under soybeans in favor of corn. This may increase the supply imbalance in the near future. “We are observing a transformation period, and within the horizon of one or two seasons, soybeans have the potential for a significant increase in price,” the PUSK adds.

Signs of activation are also being recorded on the Ukrainian domestic market: market participants are reorienting themselves to sales channels with higher liquidity — in particular, to processing. “Purchase prices at processing enterprises currently fluctuate within the range of 17,700–18,000 UAH/t for small batches, which makes this direction more profitable compared to exports through ports, where prices have decreased. At the same time, we expect that by the end of May, soybean quotes at ports will again exceed $400 per ton,” the PUSK predicts.

Tags: Ukraine, prices, soybean, USA