Ukraine continues rising prices for soybeans

soybean Futures in the United States for the month increased by 11% to highest in 2 years of a trade war with China-level 360 $/t on the back of lower crop forecasts and strong imports from China.

it is Expected that the soybean crop in the U.S. compared to the previous season, will grow from 97 to 116 mln t, and in Brazil from 122 to 130 to 131 million tonnes due to growth of sowing areas. Growth in expected imports for China, which continues to increase the reserves of soybeans and corn, support prices for these crops on a high level, despite a forecast of record high world soybean crop in the current season.

In Ukraine resulting in a sharp reduction of the soybean crop in the previous season, the price of it rose sharply to 380-410 $/t for deliveries to the port, and between processors and exporters has significantly intensified competition. So at the end of the season, processors had to import 20 thousand tons of soybeans from Brazil.

In this season, the processors again lose in the fight with the exporters, which actively increase the purchase price for the significant decrease in the soybean crop in Ukraine.

Processors offer soybean GMO 12000 UAH/t with delivery to the plant, equivalent to USD 360/t, while exporters are willing to pay 375-385 $/t for shipment to the port.

For soy GMO exporters offer 400-415 $/t or 13300-13800 UAH/t with delivery to the port or the border, but processors are not willing to pay such a high price.

Promote the collection of soybeans in Ukraine and the USA will meet the demand is growing, and will increase pressure on prices, a sharp rise which reduces the volume of world consumption.