Prices for soybeans in Ukraine continue to fall

the Increase in soybean yields in Ukraine offset the reduced acreage and the soybean crop at last year's level of 4.2 million tonnes as of October 22, with 87% of area harvested 3.8 million tons of soybeans with a yield of 5T/ha, which is 36% higher than last year's level.

the Increase in soybean production in Ukraine is happening in the background harvesting a record soybean crop in the US and falling prices on the world market.

the Price of soybeans remain under pressure of refusal of purchases of U.S. soybeans by China, which after the aggravation of trade relations with the United States virtually ceased imports of U.S. soybeans. Soybean futures in Chicago traded at the level of 319,5$/t, and the fundamental factors for the growth of prices in the coming months will be practically absent. Good precipitation and high rates of planting a new soybean crop in Brazil, become an additional factor of pressure on the price of soybeans for delivery in January, when it will resume sales of Brazilian soybeans on the world market.

Changes in tax legislation in Ukraine, which does not allow exporters to obtain a refund of VAT on exports of soybeans, caused the failure of many traders from the sale of Ukrainian soybeans abroad, which greatly reduced export demand for soybeans.

the decision of the state to stimulate processing of soybeans in Ukraine and to export processed products showed that the market is not ready for such a drastic change.

According to the forecast of the Agency "APK-inform", in 2018/19, my Ukraine will be able to process a record volume of soybeans at least 1.5 million tonnes compared to 1.25 million tons last year. But the question remains what to do with 3-3,5 million tons of soybeans, which are usually exported out of the country, but through lower export demand and logistical problems will not be exported in the coming months.

the Price of soybeans GMO delivery to the port are declared at the level of 325-335 USD/t, while exporters are virtually no purchases in the national currency.

the processors ' Purchase prices for soybeans continue to decline and have dropped to 10200-10400 UAH/t with delivery to the plant, but they are willing to buy only high-protein soy and only directly from manufacturers.

the Demand for non-GMO soy protein 38% from the EU remains low, and traders offer 350-355 $/t DAP at the border Ukraine-Poland, although the experts of the EU in the current season will increase soybean imports by 1.5 million tons to 15.5 million tonnes increase in the supply of cheap soybeans from the US to the EU reduces the probability of growth of exports of Ukrainian soybeans in the EU.