European buyers are actively contracting Ukrainian soybean oil

Ukraine continues to increase its position in the global soybean market despite external risks and price fluctuations, reports the analytical department of the PUSK agricultural cooperative, established within the VAR.

 

As of April 1, Ukraine exported almost 93 thousand tons of soybeans, which, against the background of active domestic processing, allowed for the effective distribution of this year's record harvest.

 

"Soybean stocks in Ukraine as of April 1 reached almost 2 million tons, while last year they were 1.7-1.8 million tons. But thanks to active processing and exports, we are confidently reducing the balances, and already in May-June we can reach the indicators of the previous season. Thus, the market was able to absorb a record volume of soybeans, which is a good signal for farmers and exporters," analysts note.

 

The global soybean market has seen a decline in importer activity, as they await news on possible tariffs between the US and the EU. However, prices remain stable, at deepwater ports at $385-390/t. Demand for soybean oil from Europe has allowed processors to increase purchases and maintain soybean prices at UAH 17,500-17,800/t.

 

"European buyers have been actively contracting Ukrainian soybean oil in recent weeks. Demand from processors remains high, and therefore purchase prices for soybeans remain at a consistently high level, which supports processing margins. Ukrainian soybeans remain competitive even against the backdrop of declining stock market quotes," analysts report.

 

Global trends may play in Ukraine's favor. In the US, corn acreage may decrease by 5–6% in favor of soybean acreage. Brazil and Argentina plan to maintain or even increase soybean production, while American soybeans are losing competitiveness amid trade tensions between the US and the EU.

 

"If the situation with tariffs between the US and the EU worsens, then the demand for Ukrainian soybeans from the EU may increase. Europe is already increasing purchases from Ukraine, and this trend may intensify in the coming months. The world market generally looks stable, and there are no prerequisites for sharp collapses. Therefore, we can expect price stability and a potential increase in the presence of Ukrainian soybeans on the European market," the PUSK predicts.