Ukraine soybean prices curbed by slack demand
Soybean prices have resumed their fall on world exchanges amid lower oil prices and higher production forecasts in Brazil, which puts pressure on soybean prices in Ukraine, Grain Trade writes.
In Poland and other importing countries of Ukrainian soybeans, the drop in prices for soybean meal and cake resulted in a decline in processing.
According to the State Statistics Service of Ukraine, in October the production of soybean oil by domestic crushing plants increased compared by 37% YoY to 23 thou. t, although since the start of 2021 it has decreased by 16.5% to 175.08 thou. t.
"During the week, purchasing prices for GMO soybeans in Ukraine rose due to the strengthening of the dollar to UAH 15.1-15.5 thou. per ton at the ports, and UAH 15-16 thou. per ton at the plants, while dollar prices at the ports remained at USD 490-500 per ton," the message reads.
Non-GMO soybean prices remain higher at ports at USD 650 per ton, while demand prices from Poland and Belarus, where this commodity is mostly exported, have dropped to USD 640-650 per ton.
A 20% drop in oil prices in November and the completion of the U.S. soybean harvest curb prices.
January soybean futures on the CME fell 4% to USD 449 per ton within a week, losing 2.7% of the price for the month.
According to NASS Fats & Oils report, US soybean processing reached a record 5.36 mln t in October, which exceeded experts' estimates but did not trigger a market response as soybean oil and meal stocks grew in the country. Today's report on weekly soybean export sales from the U.S. will be an additional factor influencing prices.
"However, the market is most conditional on favourable weather for crop development in Brazil and forecasts of record production. StoneX revised upward its forecast for Brazil's soybean crop by 0.4 mln t to a historic high of 145.1 mln t, which would exceed the USDA's forecast of 144 mln t and last year's 138 mln t," analysts comment.
Previously reported that La Niña may affect the development of soybean and corn crops in Argentina.
Soybean was 100% harvested in Ukraine as of 25 November. The new crop reached 3.42 mln t, the average yield stood at 2.67 t/ha.
