Soybean prices in Ukraine continue to fall under the pressure of imposed export duties

The introduction of 10% export duties on soybeans and rapeseed in Ukraine has practically stopped soybean exports. However, soybeans are just beginning to be harvested and have not yet arrived in large numbers at ports, while rapeseed has already been exported and traders have been forced to pay duties to clear export consignments.

During the week, export prices for GMO soybeans decreased by 200-500 UAH/t to 16,700-17,200 UAH/t with delivery to Black Sea ports, but prices in foreign currency remain at high levels of $392-396/t, as traders are trying to form export batches.

Amid uncertainty about further exports, demand for Ukrainian soybeans from major importers, in particular Egypt and Turkey, has significantly decreased.

For non-GM soybeans, exporters offer UAH 18,000-18,200/t with delivery to Black Sea ports or $420-430/t, depending on delivery terms.

Against the backdrop of an increase in soybean supply, processors have reduced prices for GMO soybeans by 500-1000 UAH/t per week to 16500-17000 UAH/t with delivery to the plant.

In their September report, USDA experts left the forecast for soybean production in Ukraine at a record level of 7.6 million tons (7 million tons last season), which continues to put pressure on prices.

Amid uncertainty over soybean exports from the US to China and an increase in the forecast for the US soybean harvest by USDA experts, November soybean futures in Chicago rose 0.7% to $383/t over the week, which is in line with last month’s level.

Analysts expected USDA analysts to lower their US soybean production forecast, but they increased their forecast for harvested area, which compensated for the yield decrease, so the harvest estimate increased by 0.2 million tons to 117 million tons compared to 118.8 million tons in the previous season.

Tags: Ukraine, prices, soybean