Ukrainian soybeans are in trend: record harvest, attractive prices, high demand
10 April 08:49
Ukraine continues to increase its position in the global soybean market despite external risks caused by the start of the trade war. This is stated in an analytical review on the website of the All-Ukrainian Agrarian Council, Komersant ukrainskyi reports.
It is reported that as of the beginning of April, Ukraine had about 2 million tons of soybeans, which is slightly more than last year, when it was about 1.7-1.8 million tons.
“However, due to high processing and exports, Ukrainian producers are confidently reducing the stocks. In May-June, we may reach similar levels to last season. Thus, the market was able to absorb a record volume of soybeans. This is a good signal for farmers and exporters,” says the analytical department of the agricultural cooperative PUSK.
What is happening on the global soybean market
Against the background of expectations related to the possible reaction of the EU to the US duties, there was a certain decrease in the activity of importers. However, prices remained stable: in deepwater ports – $385-390 per ton. Processors in Ukraine have become more active, and the conditional prices for soybeans are at 17,500-17,800 UAH/t. The demand for soybean oil from Europe also supports the market.
“European buyers have been actively contracting Ukrainian soybean oil in recent weeks. The demand from the processors remains high, and thus the purchase prices for soybeans are stable at the attractive level. Ukrainian soybeans continue to be competitive, even against the background of lower stock prices,” the analysts said.
What about the export forecasts
Global trends may play in favor of Ukraine. In the US, corn acreage is expected to decline by 5-6%, while soybean acreage may increase by a similar amount. South America – Brazil and Argentina – plan to maintain or even increase production volumes. However, the U.S. soybeans have started to lose competitiveness amid the trade tensions between the U.S. and the EU.
Europe is already increasing its purchases from Ukraine, and this trend may only intensify in the coming months. Therefore, according to analysts of the PUSK cooperative, we can expect prices to remain stable and the potential expansion of Ukrainian soybeans on the European market.
The soybean market in Ukraine is changing
Not only production growth, but also active rethinking of its strategies related to processing is characterizing this market today.
According to Agravery, this was confirmed by a conference organized by the Ukrainian Soybean and Bean Association and APK-Inform. The conference focused on export prospects to China, challenges of certification under the new EU directive, development of the non-GMO segment, and internal processing as a key to increasing the profitability of the agricultural business.
Added value should remain in Ukraine, said Oksana Osmachko, Deputy Minister of Agrarian Policy and Food of Ukraine. According to her, the state considers the sector to be one of the priorities for creating added value in the country.
“Speaking of 2024, we already have something to be proud of – 6 million tons of soybeans and almost 500 thousand tons of peas were produced. These are really significant figures. But we want more processing to take place in Ukraine so that you can increase your capacity and export value-added products,” Oksana Osmachko said in her speech at the conference.
“And the Chinese market opens up new horizons here. But, on the other hand, Ukrainian soybeans remain in demand in the EU, and this opportunity should also be fully utilized.
Ukraine holds leading positions in soybean exports
In the 2024/2025 season, Ukrainian soybean exports are expected to reach a record 3.7 mln tons.
The main buyers of Ukrainian soybeans are the EU countries and Turkey, and they are also in demand in African markets, particularly in Egypt.
In the 2023/2024 season, the supply to Egypt exceeded 1 mln tonnes, which was a historic high.
As a reminder, 2024 was a record year for soybean producers. The total harvest amounted to 6 mln 14 thsd tonnes. The average yield was 2.3 t/ha.
The leaders in terms of yield were: Khmelnytsky region (3 t/ha), Lviv region (3.1 t/ha), Ivano-Frankivsk region (3.2 t/ha).
Regions with the largest harvested volumes: Khmelnytsky (828.3 thou tons), Zhytomyr (540.7 thou tons), Poltava (494.1 thou tons).
