Prices for soybean meal in Ukraine are falling under the pressure of low demand

According to APC-Inform, the long-term increase in prices for Ukrainian soybean pulp at the end of January was replaced by a drop in offer prices.

Lower prices for soybeans and significant volumes of raw material receipts reduced the cost of processing, which made it possible to lower selling prices for soybean meal.

In addition, livestock and compound feed enterprises, which had significant stocks of the product, reduced pulp purchases in anticipation of further price reductions.

The low activity of buyers led to the increase in the balances in the warehouses of processors, which further increased the pressure on prices.

At the beginning of February, the prices of soybean pulp offers in Ukraine fell to UAH 18,400-20,600/t EXW. However, the reduction in sales volumes forces processors to further reduce prices, which are supported only by the previous high costs of purchasing raw materials (especially high-protein) for processing.