Soybean prices in Ukraine rose against the backdrop of delayed deliveries from South America

In Ukraine, purchase prices for soybeans in the ports of the Danube and the Black Sea increased against the background of a reduction in offers from producers and an increase in world prices for oil crops due to the delay in soybean deliveries from South America.

Thus, during the week, the prices of GMO soybeans rose by UAH 200-300/t to UAH 18,000-18,300/t or $405-410/t with delivery to the Black Sea ports, after which the processors raised prices to UAH 17,000-17,300/t with delivery to the factory.

In March, compared to February, Ukraine reduced soybean exports by 30% to 227,000 tons, and in total in 2023/24 MR shipped 2.45 million tons of the forecasted 4 million tons, while last year for the same period 2.35 million tons were exported soybeans, and the export forecast was 3.5 million tons.

The export of soybean oil from Ukraine in 2023/24 MR increased compared to the corresponding period of the previous season by 22% from 165 to 202 thousand tons, which is equivalent to the processing of 1 million tons of soybeans. We would like to remind that in 2022/23 MR, the export of soybean oil amounted to 277,000 tons (equivalent to 1.4 million tons of soybeans), and in the current season it may reach 300,000 tons.

According to AgRural data, soybeans were harvested on 78% of the area in Brazil on April 5 (82% last year). According to estimates of the BAGE Grain Exchange, 4% of soybeans have been harvested in Argentina, as rains are delaying work, and the average yield of soybeans is 3.8-4.1 t/ha. At the same time, 79% of crops are in good or excellent condition.

In 2023/24, the US exported only 37.6 million tons of soybeans, which is 18.5% lower than last year's pace and increases the pressure on quotations.

May soybean futures on the Chicago Stock Exchange fell 0.5% to $434.1/t during the week, and will continue to fall further as the harvest in South America accelerates.