Prices for sunflower and soybeans in Ukraine are growing against the background of problems with the harvest in South America

Despite the active harvesting of soybeans in Brazil and the improvement of weather forecasts in Argentina, prices for soybeans and soybean oil continue to rise, which supports the purchase prices for sunflower and soybeans in Ukraine.

Russia’s recognition of the independence of the terrorist associations of the LPR and DPR increases tension in the region and increases the risk of Western sanctions that may restrict exports from the Russian Federation. Therefore, buyers are afraid to Buy Black Sea sunflower oil and prefer soybean and palm oil, prices for which continue to rise.

In Ukraine, increased tension at the borders and on the contact line leads to an increase in the dollar exchange rate, which supports the purchase and export prices for soybeans and sunflower. So far, exports are proceeding at the usual pace and businesses are working, hoping for Western help in stabilizing the situation after the legalization of aggression, which began back in 2014.

Purchase prices for sunflower with an oil content of 48-50% increased at plants by 200-500 UAH/ton or 20-25 $/ton to 20700-22500 UAH/ton or 726-790 ПДВ/ton with VAT, although sunflower oil for the week rose in price by 30-40 $/ton to 1430-1440 f/ton FOB and still has the potential for price growth.

Export prices for soybeans with GMOs in ports increased by 1 10-15/ton to 5 570-575/ton or UAH 18400-18600/ton, while processors offer no more than UAH 18150-18600/ton for soybeans with delivery to the plant against the background of low demand for soybean meal.

For non-GMO soybeans, exporters raised prices to 6 670-680/ton or UAH 21300-21500/ton with delivery to the port or border, while processors ‘ prices remained at the level of UAH 20400-20500/ton with delivery to the plant.

March soybean futures in Chicago rose 1.2% to.595/ton yesterday, adding 3.3% for the week and 15% for the month.

March soybean oil futures rose 2% to 1 1,512/ton yesterday, adding 4.5% for the week and 10.8% for the month.

In Brazil, as of February 17, soybeans were harvested on 33% of the area (24% a week ago and 15% last year). Based on harvesting data, agricultural experts confirmed their pessimistic forecasts of the soybean harvest in 2021/22 MG at the level of 128.5 million tons, which is 17 million tons lower than last year’s figure.

April palm oil futures on the Malaysian stock exchange rose 2.5% yesterday to 5,675 ringgit/ton or 1 1,356/ton, which will support prices for other vegetable oils.

GrainTrade

Tags: soybean, Malaysia, Argentina, Ukraine, Russia, sunflower, Brazil, prices