Ukraine regaining its position in the European soybean market


According to USDA estimates, the EU will reduce soybean imports by 8% in 2016/17 against the previous season, to 13.8 MMT, in view of sufficient soybean carryovers and a hike in own soybean production in the EU.

Indeed, the current pace of purchases from third countries (September-February) is slower than in the previous season. Lower purchases are reported by the key suppliers: the USA (-29%), Brazil (-22%) and Canada (-12.3%). Simultaneously, unlike less successful soybean suppliers, Ukraine is restoring its position in the European market. The growth of sales to Europe is promoted by a bumper total soybean crop of 4 MMT harvested in 2016.

The interest of EU countries in Ukrainian soybeans and soybean meal increases from year to year. The soybean output forecast for 2017/18 is quite optimistic. This will certainly predetermine a further upturn in deliveries of these products to the EU, UkrAgroConsult notes.



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