Ukraine. Will farmers go the way of expanding soybean plantings next season?

17.10.2018

Svetlana Kupreeva oilseed and vegoil market analyst at "UkrAgroConsult"

The current 2018/19 season in the soybean market is just gaining pace, the harvest is drawing to a close (88% complete as of October 12) with a good yield (up 38.5% from last year).

Despite a reduced planted area (down 12% from the 2017/18 season according to UkrAgroConsult’s estimates), the above-mentioned factors suggest that the soybean crop will be good enough, UkrAgroConsult analysts report.

In the light of changes in the regulations governing soybean export VAT refunds, growers did dare to sow this crop. In turn, crushers are preparing to process soybeans in the current season, and they expect to eventually get good results. It can be boldly stated already now that in the 2018/19 season the soybean market avoided turmoil and began transformation in order to operate in the new conditions.

What is the outlook for the next 2019/20 season? Will farmers stay loyal to soybeans or prefer some other crop? The experience shows that our growers must increasingly often take into account global factors, if they want to get the best result.

The question of what the farmer will opt – sunseed or soybeans, sunseed or corn – traditionally arises when planting of late crops for the 2019 harvest is discussed. The current situation, primarily that in world markets, make us pay more attention to the soybean-corn pair.

Full version of the article is available to subscribers for weekly market report “Black Sea Grain” by UkrAgroConsult.

Analytical report "Black Sea Grain" contains detailed information on the latest trends in grain exports, supply and demand balances with breakdown by crop, price behavior, crop conditions and progress in harvesting/planting in the countries of Black Sea region.

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