Soybeans remain one of Ukraine’s most flexible export crops amid logistical challenges

Soybeans continue to hold competitive advantages among Ukraine’s export crops thanks to strong demand from processors, flexible logistics options, and relatively small export shipment sizes. In addition, the market has potential for further price growth in the new season, according to analysts at the PUSK agricultural cooperative, established within the Ukrainian Agrarian Council (VAR).

According to the analysts, soybeans have been one of the few crops providing stable profitability for producers over the past three seasons.

“In 2022-2024, soybeans, along with rapeseed, were among the few crops that consistently generated profits for farmers. One of their key advantages is the ability to sell either to domestic processors or for export. Soybeans can be transported by both road and rail, while demand also remains strong at Danube ports. In addition, export shipments do not require large cargoes like corn – 200-300 tons is sufficient. This is why soybean demand remains much more flexible,” PUSK said.

At the beginning of the new marketing year, analysts expect the greatest price pressure to emerge in the corn market, while soybean prospects appear more favorable.

“If we compare soybean and corn prices, we have not yet reached peak price ratios. A similar situation occurred at the beginning of last season, when the recommendation was simple: sell corn and store soybeans. Producers who sold soybeans in January, February, or March achieved significantly better prices. A similar scenario could repeat this season,” the analysts said.

As the main harvest gets underway, corn supplies may significantly exceed demand, putting downward pressure on prices. Soybeans, by contrast, have a better chance of appreciating during the second half of the season.

“Some processors are already offering 17-18 thsd UAH/t for new-crop soybeans. Under certain logistical conditions, however, the market could reach 20-22 thsd UAH/t. Therefore, producers may benefit from avoiding early forward sales, as winter prices could prove much more attractive,” PUSK concluded.

Tags: Ukraine, soybean