Cancel "soy edits" stimulates export demand for soybeans and canola
Yesterday, the Verkhovna Rada adopted the bill No. 1210, amending the Tax code of Ukraine, in particular, repeals the so-called "soy dressing".
Recall that on 21 December 2017, the Parliament introduced rules which override reimbursement to the traders VAT on exports of soybeans in the period 01.09.2018-31.12.2021 and rape in the period 01.01.2020-31.12.2021. This has reduced the purchase of soya traders for the currency and has reduced its exports through the refiners got no market advantages and reduce purchasing prices for soybeans, with the result that farmers have suffered losses and sharply reduced acreage of soybeans in 2019. From 1 January 2020 accounting limited was introduced for rape, so back in November, traders have stopped purchasing for the hryvnia and 20% reduced prices.
In anticipation of the abolition of the "soy edits" manufacturers in December stopped sales of soy, so the processors have had to raise prices to 9400-9600 UAH/t with delivery to the plant.
the Growth in world soybean market supported the purchase price of soybeans in Ukraine that rose to 350-365 $/t for deliveries in the port or at the border depending on the quality. The new law will intensify the purchase of soybeans and canola for the hryvnia, that the price of soybeans at the port will rise to 9800-10200 UAH/t, and the processors in the struggle for providers will be forced to raise the purchase price.
the Purchase price of rapeseed in Ukraine is almost not declared for lack of offers. The rapeseed of the new harvest forward prices in Porto are a $420/tonnes, which is 20-30 $/t higher than the previous year's level, as prices for rapeseed in the EU has increased dramatically. Euronext on 10 January, they jumped to 421,5 €/ton, now dropped to 404,25 €/t for deliveries in February and to 384,75 €/t or 428,6 $/t for deliveries in August.