Active export support prices for soybeans in Ukraine at a high level

a Sharp increase in soybean exports from Ukraine in 2019/20 MG led to increased competition between processors and exporters, and the growth of domestic purchase prices.

In this season, as at 21st April, Ukraine exported 2,606 million tons of soybeans, which is 595 higher than the corresponding figure last year.

given the volume of exports and processing of soybeans in Ukraine in 2019/20 Mr experts of "APK-inform" revised estimates of the harvest of oilseeds in 2019, the harvest increased to 4.35 million tons (second highest), which is 650 thousand tons exceeds the official data of the state statistics and shows that almost 15% of the crop was produced on the black market. According to the updated forecast of domestic consumption of soybeans in 2019/20 MG will be 1.8 million tonnes, which is 17% less than last year.

Through precipitation caused by the delay in harvesting of soybean in Argentina and Brazil, even despite the increased production and export of oilseeds in these countries, the demand for Ukrainian soybeans in March-April.

Export prices for soybeans at the port during the month increased by 5-10 $/MT up to 365-375 $/ton thanks to strong demand from Turkey and Egypt. Traders raise prices in order to carry out the contracts, and processors – essentially to get to the end of the season volumes. Processors offer soy 11800-12000 UAH/t with delivery to the plant that corresponds to the level of 380-385 $/t at the port. For soybeans, non-GMO offer 380-385 $/t at the border with Belarus, but domestic purchasing price is the most interesting.

the High level of prices on the background of containment sales manufacturers, who expect the price high, has forced private refiners to stop purchasing soy after export prices of soybean meal decreased.

the July soybean futures in the U.S. yesterday fell 1% to 310,5 $/tonne, despite the news about intention of China to increase purchases of soybeans to replenish state reserves.

Export sales of soybeans from the U.S. last week rose by 41% to 344,9 thousand tons, which is 42% below the corresponding period last year.

Prices for June shipments of U.S. soybeans remain at 333-335 $/MT FOB Gulf, whereas the prices of Brazilian and Argentine soybeans are reduced due to the devaluation of local currencies.