Soybean prices in Ukraine remain high at the start of the season
In Ukraine, the situation with the sunflower and soybean harvest remains uncertain, so at the start of the new season, prices for these crops remain at maximum levels. Oil extraction plants are trying to maximize their workload for the coming months and take advantage of high oil prices.
Processors have raised their prices for GM-soybeans to 17,400-17,600 UAH/t, and for non-GMO soybeans to 18,800-19,200 UAH/t with delivery to the factory.
The introduction of a 10% export duty on soybeans also limits traders’ export purchases in hryvnia, so they raise their prices in foreign currency to form the first export batches.
During the week, export prices for GM-soybeans increased by $4-5/t to $392-398/t with delivery in September-October to Black Sea ports, and for non-GM soybeans – to $420-430/t.
Active sales of American soybeans to the EU, Egyptian, and Pakistani markets create strong competition for Ukrainian soybeans, and if China continues to refuse to purchase soybeans from the US, the pressure on prices will increase further in October and November.
September soybean futures in Chicago fell 2.4% to $372/tonne for the week (+5.4% for the month), but November futures fell 2.8% to $377/tonne (+4%) under pressure from the lack of Chinese purchases of both old and new crop soybeans from the US, and purchases of soybeans from Brazil for November delivery. China usually buys soybeans from the US for September-January delivery, and buys from Brazil at other times.
Rainfall in southern Brazil allows for moisture accumulation and an earlier start to sow corn and soybeans, but all market participants will be closely monitoring the weather in central Brazil, where the rainy season is due to begin in late September and the sowing of the new soybean crop will begin.
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