Rains in Brazil lower soybean prices on world exchanges and in Ukraine

Rains in Brazil increase pressure on global soybean prices, which lowers export prices and demand in Ukraine. However, processors are gradually raising purchase prices and increasing soybean processing plans amid a shrinking sunflower crop.

 

During the week, export purchase prices for soybeans with GMOs decreased in Black Sea ports by 300-500 UAH/t to 17,700-18,000 UAH/t or $380-385/t, while processors increased prices by 300-500 UAH/t to 18,000 - UAH 18,500/t with delivery to the factory. The increase in sunflower prices to UAH 24,500-25,000/t and the restraint of sales by producers forces factories to increase soybean processing.

 

Export purchase prices for non-GMO soybeans this week in Black Sea ports remained at $455-465/t or UAH 21,800-22,200/t, but the number of buyers decreased. At the same time, processors raised prices by UAH 300/t to UAH 21,700-22,200/t with delivery to the plant.

 

On October 10, 4.83 million tons of soybeans were threshed from 2.12 million hectares or 80% of the area in Ukraine with a yield of 2.28 tons/ha.

 

According to the Conab agency, 9.1% of the planned area was sown with soybeans in Brazil on October 13 (19% last year), but the rains will allow the sowing to be accelerated in the near future. In their first forecast, Conab experts estimated the soybean harvest in the country in 2024/25 MR at 166 million tons, which will exceed the figure of the previous season (147.4 million tons) by 12.7% thanks to an increase in the area sown by 2.8/% to 47 .33 million hectares.

 

November soybean futures on the Chicago Stock Exchange fell 2.5% for the week to $364/t (-6.7% since the beginning of October) amid an improved outlook for the soybean harvest in Brazil and high harvesting rates in the United States, where On October 13, soybeans were harvested on 67% of the area (51% on average over 5 years).

 

December Brent crude oil futures fell 6.3% to $74.3/barrel from Monday, increasing pressure on oilseeds prices, especially amid reduced demand from China.

 

According to the State Customs Service, in September, compared to August, China reduced soybean imports by 6.8% to 11.37 million tons, and in total, for 9 months of 2024, it imported 81.85 million tons of soybeans, which is 8.1% higher than last year's pace .