Ukraine. Profitability of soybean production recovers

10.11.2016

The current 2016/17 soybean season is completely different from the past one, except for the fact that Ukraine is unlikely to obtain soybean crop higher than 4 MMT again.

Each marketing year has its own characteristic features. The 2016/17 soybean season can be characterized by the following:

1. Planted area reduction due to low production profitability in the last 2015/16 season. UkrAgroConsult estimated profitability at 30%;

2. Soybean harvesting delay compared to last season, because of record large sunflower area;

3. High soybean humidity and losses caused by rainy weather, especially at the end of harvesting campaign.

Given all these factors, UkrAgroConsult expects soybean production to reach 4 MMT in 2016. As a reminder, a bit earlier the estimate was more optimistic (4.3 MMT). A 18% increase in soybean average yields owing to favorable weather during plants development, will not be able to offset the reduction of planted area and losses.

Full version of the article is available to subscribers for weekly ag market report “Black Sea Vegoils & CIS” and “Online market review” by UkrAgroConsult.

 

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