Prices for Ukrainian soybeans are under pressure from low demand
On world exchanges, soybean quotes resumed their decline amid falling oil prices and higher production forecasts in Brazil, which increases the pressure on the purchase prices for soybeans in Ukraine.
Writes about this GrainTrade.
It is noted that in Poland and other countries importing Ukrainian soybeans, the fall in prices for soybean meal and cake has led to a decrease in processing rates.
According to the State Statistics Service of Ukraine, in October, the production of soybean oil by domestic oil extraction plants 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 to UAH 15.1-15.5 thousand per ton in ports and UAH 15-16 thousand per ton at factories, but dollar prices in ports remained at the level of $ 490-500 per ton, ”the message says.
It is noted that, at the same time, prices for non-GMO soybeans in ports remain at a higher level - $ 650 per ton, while demand prices from Poland and Belarus, where such soybeans are mainly exported, decreased to $ 640-650 per ton.
The 20% drop in oil prices in November and the completion of the US soybean harvest are reportedly adding to the pressure on prices.
January futures for soybeans on the Chicago Stock Exchange fell 4% over the week to $ 449 per ton, having lost 2.7% of the price over the month.
According to the NASS Fats & Oils report, processing of soybeans in the United States in October reached a record 5.36 million tons, which exceeded the expectations of experts, but did not cause a reaction from the market, as stocks of soybean oil and meal rose in the country. Today's weekly US soybean export sales report will be an additional factor influencing prices.
“However, most of all, the market is under pressure from favorable weather conditions for the development of crops in Brazil and forecasts of record production. StoneX has raised its forecast for Brazil's soybean crop by 0.4 million tonnes to historically highs of 145.1 million tonnes, exceeding the USDA's forecast of 144 million tonnes and last year's figure of 138 million tonnes, ”the report said.