Despite the drought, Ukraine can harvest a record soybean crop - ASAP Agri believes

ASAP Agri experts, despite the long drought, raised the forecast of soybean production in Ukraine in 2024 to a record 5.7 million tons, so its export will also reach a record level. The correction of the forecast is due to the increase in the area of sowing to the historically maximum 2.63 million hectares, as reported by the State Statistics Service of Ukraine. At the same time, the MSG of the USA estimates the area under soybeans at 2.9 million hectares.

The main issue at the moment is the distribution of the soybean crop between exporters and processors. Soybean exports will undoubtedly reach a record 3.1 million tons, and possibly more, but processing may also exceed 1.9 million tons and also reach an all-time high.

In view of the "bearish" global balance of soybeans and good harvest prospects in Ukraine, as of August 16, sellers of Ukrainian soybeans of the new crop reduced the prices for October deliveries on CIF Marmara to $420/t and on CIF Egypt to $430/t, then as at the beginning of July, new crop soybeans were offered at CIF Egypt at $470/t and more.