Prices for soybean meal in Ukraine reached a record level, but soybeans of the new crop are falling sharply

According to APC-Inform, as of the end of August, offer prices for soybean meal in Ukraine reached a record 22,600-24,500 UAH/t EXW, while last year in this period they were 11,800-14,500 UAH/t EXW.

It is worth noting that soybean meal prices are gradually increasing throughout the year against the backdrop of rising soybean prices and increased demand for meal from livestock farmers and feed mills. Since July, price growth has accelerated due to a significant reduction in supply caused by the summer shortage of soybeans.

But more and more buyers, in anticipation of the new season, reduce the demand for products from the old harvest, which at the end of August sharply slowed down the growth of prices.

The main reason for the increase in soybean prices was high export demand at the end of the season, due to which in mid-August prices for deliveries to the Danube ports reached $515-540/t. Exporters needed to fulfill contractual obligations, and the volume of offers was quite low. At the same time, prices for soybeans of the new harvest fell to $400-420/t with delivery to the Danube ports. The demand prices for deliveries to Italy in October-November are $480-490/t, for deliveries to Hungary - $420-440/t, so we should not expect that the prices of soybeans of the new crop will exceed last year's levels.

Rains in the central regions of Brazil favor the early sowing of first-harvest corn. If there are good seasonal rainfalls in September, soybean acreage and production forecasts will rise again, which will restrain the rise in global oil prices.