Soybeans production in Ukraine assumed higher in 2021/22 for improved yields

Soybeans deficit, resulting in weak trade activity, low export shipments, rising soybean prices in the domestic market, despite the advancement of harvesting campaign, marked the start of the 2021/22(September 2021-August 2022) season, observes UkrAgroConsult oilseeds market analyst Svetlana Kupreeva.

"In 2021/22, soybean production area declined further. It was a challenge for soybean to compete with sunflower, while the area of the latter set a new record. Nevertheless, the crop may be 10-15% higher due to more optimistic yield forecasts," she asserts.

Analysts note that operational data on the progress of harvesting show a significant lag in harvesting while yields are increasing.

"We saw a reduction in soybean areas for the third consecutive season in 2020/21 as a consequence of the government's taxation policy. This led to Ukraine's lowest soybean harvest in the last seven seasons, 3 mln t," Svetlana Kupreeva adds.

Reportedly, soybean exports almost halved for a lower soybean crop combined with a proactive stance by processors. In addition, steady demand for non-GMO soybeans, high premiums exceeding USD 100 per ton compared to GM soybeans, proved to be a key feature of 2020/21.

As of 13 October, soybean harvest in Ukraine reached 2,013.73 mln t using the average yield of 2.57 t/ha (Oct. 2020: 2 t/ha). Producers in Khmelnytsky region harvested the highest yield of this oilseed crop — 3.8 t/ha.

Soybean production in Ukraine and worldwide (click for full resolution)

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