Export demand for soybeans in Ukraine is declining due to high supply prices

In the beginning of the season lower than world prices for Ukrainian soybeans has intensified its exports due to low demand from processors. In the 4th quarter 2019 exporters bought soybeans at the port at 330-350 $/t, and the processors at the plant – in 8200-9200 UAH/t (equivalent 328-368 $/t).

Since the beginning of the 2019/20 MG up to January next year, Ukraine exported record for this period, 2.1 million tons of soybeans, while in January delivery fell to 330 thousand tonnes compared to 433 thousand tons in December.

But from the beginning, the processors raised prices, and soybeans delivered to the factory rose from 10,000 UAH/t (425 $/t) in January, up to 12 600 UAH/t (470 $/t) in may amid a limited supply and higher prices the exporters in the port of from 350 to 355-370 $/t

During February-April 2020 Ukraine exported 400 thousand tons of soybeans, which is 32% less than the corresponding indicator 2019

the Main buyers of Ukrainian soybeans in 2020 are: Turkey (23.6 per cent), Belarus (20,5%), Greece (9%). In the 1st quarter of 2020 Turkey reduced the import of soybean in comparison with the corresponding period of last year by 54%, Belarus 5%, and Greece has increased by 23%.

Exporters of complete program of supply of GMO-free soy in Belarus and GMO soy in Turkey, as the market was filled with cheap South American soybeans and soybean meal with high protein content.

Ukrainian refiners have stopped buying soy no GMOs, as the profitability of processing and export of SME in Poland gradually decreases. Due to the high purchase prices, the processors have attracted sufficient stocks of soybeans, but got problems with the implementation of an expensive meal.

Also in the 1st quarter of 2020 Ukraine exported 120,14 thousand tonnes of soy oil, of which 44.72% to China and to 36.68% in Poland.

will Soon enter into force, the President signed the bill No. 1210, which cancels the "soybean-rapeseed restrictions", since the timing of his veto, was released.

currently before Parliament, filed another bill number 2446 on the abolition of soy amendments recommended for adoption in the first reading by the Agrarian Committee of the Parliament.

These laws will allow farmers to freely sell their products, as the rate of reimbursement of VAT at export of soybeans spread to all market participants.