Soybean exports from Ukraine dropped 30 pct
Over the eight months period of 2018/19, soybean exports from Ukraine dropped 29 per cent from the previous year's relevant indicator. However, the decrease in supplies is not as significant as it was expected a month earlier (20 per cent), while by the previous forecast the decrease should have equalled 24 per cent.
“In the crushing segment, oil extraction facilities have become hostages of the decline in world prices in the soybean complex. The record sunflower crop is also pressing, which allows processors to work by the traditional scheme without experiencing a shortage of raw materials,” UkrAgroConsult analysts comment.
By the beginning of the new season, carry-overs of soybeans will decline compared with the previous forecast, while remaining at a record for Ukraine level.
As of May 31, 1,48 million hectares or 81 per cent of the forecast areas were sown in Ukraine, 12 per cent below last year’s figures. The official forecast for soybean is 1.82 million hectares (+5.5 per cent y-o-y).
“The forecast remains unchanged. We expect a 200-250 thousand hectares reduction. Soybean yield reduction in Ukraine, the world market conditions and decrease in demand for processed products will lead to a drop in production capacity of soybeans. Soybean market export potential will decline significantly,” UkrAgroConsult analysts project.
Previously reported that in January-April of the current year Globyno Processing Plant (Astarta-Kyiv), Pology Oil Extraction Plant and Myronivsky Plant of Greets and Feed Stuff exported the highest volume of soybean oil from Ukraine.
The infographic guide Agribusiness of Ukraine 2017/18 is available by the link.