Ukraine soybean prices could rise to $520/t as supplies tighten

Source:  Uacouncil
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Soybean prices in Ukraine could rise to $500–520/t at the western border in December–January, up from the current $440–450/t. According to analysts at PUSK, created within the Ukrainian Agri Council (UAC), the market is being supported by limited supply and strong demand from processors and exporters.

Although Ukrainian farmers have already harvested around 2 mln tons of soybeans, market availability has not increased significantly. Processors and exporters are actively seeking supplies and approaching farmers with purchase offers, creating conditions for further price growth.

Strong demand from crushing plants is providing additional support. In western regions, purchase prices have already reached around UAH 18 thsd/t, while processors are prepared to give up part of their crushing margin to secure sufficient volumes of soybeans.

At the same time, soybean planted area declined by around 20% this season. According to PUSK, somewhat higher yields are unlikely to fully offset the reduction in production potential. Stable demand for soybean meal is also encouraging processors to increase raw material purchases.

Analysts expect processor bids in western and central regions to rise to UAH 18.5–19 thsd/t by the end of October. They see December–February as the most favorable selling period, with prices potentially reaching $510–520/t under an optimistic scenario.

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