Processors in Ukraine are switching from sunflower seeds to soybeans and raising prices for it
The lack of margins in sunseed processing due to high raw material prices caused by producers’ sales restraint is forcing plants to switch to soybean processing, the processing margin of which is also low, as soybean export prices remain low.
Last week, processors in Ukraine raised prices for GMO soybeans by UAH 100-200/t to UAH 17,500-17,900/t with delivery to the plant in order to load capacity for several months until the rapeseed harvest begins.
Export prices for GMO soybeans remain at $385-392/t or UAH 18,000-18,250/t with delivery to Black Sea ports, as only small companies are making purchases, while international traders are not interested in Ukrainian soybeans, as they supply large batches of cheap American soybeans to Egypt.
Export prices for non-GMO soybeans remain at $425-435/t or UAH 19,800-20,100/t with delivery to Black Sea ports, and processors offer UAH 19,000-19,200/t with delivery to the factory, as they have difficulties selling non-GMO meal in the EU, where there is a significant supply of GMO meal.
May soybean futures on the Chicago Board of Trade this week traded at $381/t (+0.6% for the week, +2.4% for the month) amid increased domestic processing and delayed harvest in Argentina.
The US National Oilseed Processors Association (NOPA) reports that soybean processing reached 5.3 million tons in March, almost matching the record set last year, thanks to increased domestic soybean oil consumption.
The trade war between the US and China continues, but soybean prices remain stable on expectations of Trump’s support for plans to increase biodiesel production in the US.
According to the Buenos Aires Stock Exchange, soybeans in Argentina have been harvested on 4.9% of the area (31% on average), which supports quotes.
IGC experts have lowered the forecast for global soybean production in the 2024/25 MY by 1 million tons, and the estimate of stocks by 1 million tons to 81 million tons. For the 2025/26 MY, the production forecast has been increased by 1 million tons, and the estimate of ending stocks has been left at 83 million tons, which will support low world soybean prices for the time being.
Further development of the grain sector in the Black Sea and Danube region will be discussed at the 23 International Conference BLACK SEA GRAIN.KYIV on April 24 in Kyiv.
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