Ukrainian processors increased purchase prices for soybeans

In Ukraine, the domestic soybean market is gradually becoming more active, while the export direction remains restrained due to high competition from Brazil and the US. This is reported by the analytical department of the agricultural cooperative PUSK, established within the VAR.

“The export volumes of Ukrainian soybeans are about 117 thousand tons. The market is moving quite restrained. At the same time, the domestic soybean market is gradually becoming more attractive. Processing enterprises are increasing coverage for February-March, and prices are adjusted taking into account the exchange rate. As of January 20, the conditional purchase prices of processors are within 18,600–19,000 UAH/t for GM soybeans and from 19,500 UAH/t for non-GM soybeans. Port quotes remain unchanged,” analysts note.

An important factor is the situation on global markets. “After the rapid autumn growth, stock quotes have entered a correction phase, but it is this correction that may form a new wave of price increases. At the same time, in key markets for Ukraine — in particular, Turkey and Egypt — Brazilian soybeans currently look more competitive for the March-April period, due to which demand for Ukrainian products remains restrained. Therefore, the potential growth of stock quotes may become a key factor in supporting the market,” – believe the PUSK. The current market situation indicates the expediency of a more balanced approach to the sale of soybeans.

“The potential for price growth remains for soybeans. Therefore, it is advisable to consider this crop as an instrument of a more flexible pricing strategy in the coming months,” – summarize the analysts.

Tags: Ukraine, prices, soybean