In the 2024/25 MY, soybean processing in Ukraine reached a record level

According to APK-Inform Agency, in December, over 250,000 tons of soybeans were processed in Ukraine, which is almost the same as in November. During these two months, demand for soybeans from processors was very high, as soybean processing became more attractive than sunflower, the sales of which decreased sharply.

Against the backdrop of significant supply and more attractive prices for soybeans, the volume of its processing in September-December 2024 amounted to a record 867 thousand tons, exceeding the previous record of 2019/20 MY of 665 thousand tons.

Soybean processing rates will remain high, driven by the following factors:

• record soybean harvest in 2024 (6.2 million tons),
• increasing demand for soybean meal from the EU, in particular Poland and Hungary,
• shortage of sunflower supplies and high prices for it.

Ukrainian soybean meal is in high demand in the EU. During September-December 2024, Ukraine increased its exports by 14% compared to the previous season to a record 284 thousand tons for this period.

Soybeans are a good alternative to sunflower for loading processing capacities. However, the problem is the oversaturation of the domestic market with soybean meal and cake, the production of which is increasing for the second season in a row, and export demand prices have decreased compared to last year by approximately $100/t DAP-western border against the background of falling world prices for soybeans and increasing offers of soybean meal from South America on EU markets.

In addition, the export logistics of processed soybean products are different from that of processed sunflower products, as over 90% of soybean meal is shipped by land across the borders with Poland and Hungary, making the market very sensitive to border closures. As the number of soybean processors increased, meal exports by water transport increased to 11% since November.