Ukraine. Soybean crushers losing to exporters

02.03.2017

In the current season 2016/17 features a bumper soybean harvest in Ukraine, which is estimated by UkrAgroConsult at 4 MMT. At the same time, according to UkrAgroConsult, the crusher interest in soybeans is declining. The main reason is decreased domestic demand for soybean products, primarily soybean meal as a basis for poultry feed. Statistics show a downward trend in poultry inventories. They sank by almost 2% over the year (195,117 Th head as of February 1, 2017 against 198,964 Th head a year ago).

It’s not that crushers have totally rejected soybeans, but the current season sees a slump in soybean oil production – UkrAgroConsult wrote about this before.

Despite the current situation in Ukraine’s crushing sector, soybean growers face no particular problems with oilseed sales. In view of heightened interest from traders, the producers easily have the upper hand when selling the commodity. In turn, the exporter interest is fueled by favorable prices in the external soybean market.

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

 

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