Soybean imports to Ukraine down prices in the domestic market
a Sharp increase in domestic prices and a shortage of supply from manufacturers forced the Ukrainian company-processor to import a batch of Brazilian soybeans to provide its facilities with raw materials.
Pology oil-extraction plant, which is the third largest processor of soybeans in Ukraine, acquired a 20 thousand MT of Brazilian soybeans for may-June in the port of Berdyansk, 2 months will provide the enterprise with a capacity of 600 t/day.
Berdyansk commercial sea port for the first time in 17 years working with import cargoes, and soy beans Ukraine has never imported. Already unloaded the first vessel with a volume of 5100 tons, entered the port of the second with 6000 tons of soybeans, and the third will arrive in early June.
Ukraine is the largest European exporter of soybeans, through the internal deficit significantly exceeded traditional imports, accounting for only 5 thousand tons per year. The increase in the current season export of soybeans from Ukraine to 2.6 million tons reduced stocks of raw materials in the country.
Last week another recycler was invited on import 30 thousand tons of soy from Argentina to meet its obligations for the sale of meal and oil.
For the year Ukraine has reduced soybean production by 23% to 3.7 million tonnes In early may, its reserves amounted to 576 thousand tons compared to 1.5 million tonnes in this period a year ago. While in the warehouses of processors is stored only 140 thousand tons of beans. However, the actual stocks of soybeans may be lower than the official data.
Domestic prices of soybeans increased by 27% up to 12 600 UAH/t or 467,47 $/t at the port due to low reserves and the depreciation of the hryvnia against the dollar. While Brazilian soybeans best quality protein 43-45% delivery to Ukrainian ports will cost 390-400 $/ton, and the Argentine with protein 38-40% - about 390 $/t. So buy the import soybean is more profitable than the Ukrainian.
market Participants fear that such imports, uncharacteristic for Ukraine, can become a common practice, if 2020/21 MG soybean production will remain low even after the abolition of the power of "soy edits".
Soya in Ukraine planted 1.4 million hectares, and its crop in 2020/21 MG will decrease to 3.4 million tons However, domestic refiners may opt for cheaper South American soybeans, but not to pay a high price for the Ukrainian beans.
According to Agricensus