Soybean market in Ukraine is entering a growth phase: prices are approaching 22,500 UAH/t

The Ukrainian soybean market is recovering price dynamics, which is due to increased demand from processing enterprises and limited supply of raw materials. At the same time, the export segment remains inactive due to competition from cheaper Brazilian products and internal regulatory factors. This was reported by the analytical department of the agricultural cooperative PUSK, established within the framework of the All-Ukrainian Agrarian Council (VAR).

Some support for oilseed crops, including soybeans, is formed by an external energy factor: rising oil prices increase demand for vegetable oils. At the same time, the main driver of the market is internal processing. Demand for soybean meal and oil is growing, which stimulates factories to active purchases.

“Over the past week, individual processors have increased purchase prices by 500 UAH/t. We are already seeing a level of about 22,000 UAH/t. By the end of April – beginning of May, there are all prerequisites to expect 22,500 UAH/t. At the same time, taking into account the current situation, an increase to 23,000–24,000 UAH/t is not excluded,” analysts note. At the same time, the export direction remains weak.

“Ukrainian soybean faces tough competition from Brazil, which is actively supplying cheaper products to world markets. An additional deterrent factor is the 10% export duty,” the PUSK adds. New market signals that are already forming should be taken into account during the sowing and further soybean sales strategy.

“Soybean next season may demonstrate high margins. There have already been periods when it was one of the most profitable crops. The world market has not yet reached its price peaks, and the Ukrainian one has the potential for further growth. “Therefore, there is logic in sowing soybeans, but you should not rely entirely on them – it is important to take into account the geography and structure of crops,” the PUSK believes.

Tags: Ukraine, prices, soybean