Purchase prices for soybeans in Ukraine remain under pressure from low demand

Soybean prices on world stock exchanges resumed their decline amid lower oil prices and higher production forecasts in Brazil, which increases pressure on soybean purchase prices in Ukraine.

In Poland and other countries that import Ukrainian soybeans, falling prices for soybean meal and pulp have led to a decrease in processing rates.

According to the State Statistics Service of Ukraine, in October, the production of soybean oil by domestic Mezas increased by 37% compared to October 2020 to 23 thousand tons, although in general, since the beginning of 2021, it has decreased by 16.5% to 175,081 thousand tons.

During the week, purchase prices for soybeans with GMOs in Ukraine increased due to the strengthening of the dollar exchange rate to 15100-15500 UAH/ton in ports and 15000-16000 UAH/ton in factories, but dollar prices in ports remained at the level of 490-500 / / ton.

At the same time, prices for non – GMO soybeans remain at a much higher level in ports-6 650/ton, while demand prices from Poland and Belarus, where such soybeans are mainly exported, have decreased to 6 640-650/ton.

The 20% drop in oil prices in November and the completion of soybean harvesting in the United States are increasing pressure on prices.

January soybean futures on the Chicago Stock Exchange for the week fell by 4% to 4 449/ton, losing 2.7% of the price for the month.

According to the NASS Fats & Oils report, soybean processing in the United States in October reached a record 5.36 million tons, which exceeded experts ' expectations, but did not cause a market reaction, as the country's stocks of soybean oil and meal increased. Today's report on weekly soybean export sales from the United States will be an additional factor influencing prices.

However, most of all, the market is under pressure from favorable weather conditions for the development of soybean crops in Brazil and forecasts of record production. Stone X raised its forecast for Brazil's soybean harvest by 0.4 million tons to a historically high of 145.1 million tons, which will exceed the USDA forecast of 144 million tons and last year's figure of 138 million tons.