Prices for Ukrainian soybeans of the new crop are 1.5 times higher than last year's

A sharp increase in prices for oilseeds over the past year continues to support the quotes of soybeans, rapeseed and sunflower at a high level, and even an increase in crop forecasts for Ukraine has not yet led to a decrease in prices.

According to APK-Inform, forward prices for soybeans of the 2021 harvest in Ukraine are significantly higher than last year, even despite the expected increase in production, as they remain under the influence of global price conditions.

The agency's experts predict that despite the reduction in sowing areas, the soybean harvest this year will be 20% more than last year, and will reach 3.7 million tons, since due to favorable weather, the average yield will increase by 23% to 2.57 t/ha.

Currently, demand prices for non-GMO soybeans of the future crop are 5 590-610/ton for deliveries to the port, which is 2 205/ton or 53% higher than the price level on the same date last year. At the same time, forward prices for soybeans with GMOs exceed last year's prices by only 39-44% or 1 133-135/ton and amount to ср 490-495/ton CPT-port.

On the basis of DAP (border with Poland or Belarus), forward demand prices for non-GMO soybeans are $232-240/ton or 61-65% higher than last year and reach 6 610-615/ton.

Among the main factors supporting soybean prices of the future harvest at such a high level, experts call the general trend of the 2020/21 season, which was characterized by high volatility and significant price levels. Quotes support related markets, in particular corn and sunflower oil, as well as a sharp increase in import demand from China amid the recovery of the pig population and the victory over asf.

As the new season approaches, prices stabilize, but the situation remains uncertain. First of all, this is due to possible problems with the soybean and corn harvest in South America. Therefore, the next season will also keep traders on their toes.