Ukraine to expand land under soybeans by up to 15% in 2024-2025 marketing year, to be able to export over 60% of them - analysts

MOSCOW. March 13 (Interfax) - Ukraine will expand the areas of farmland under soybeans by 10%-15% in 2024, Ukrainian media reported citing a statement on the website of the UkrAgroConsult agency.

"During the 2023-2024 marketing year [lasts from July 2023 to June 2024], soybean prices have stayed quite confidently both on the domestic and export markets, having recovered after dropping at the start of the season. Ukraine is guaranteed to have a record soybean harvest in the 2024-2025 marketing year, which cannot but put pressure on the prices. Apart from that, the soybean market is very sensitive to trends on the global markets of not only soybeans but also their products, as well as the sunflower grist market," the statement said.

Even if the soybean yield is moderate in the 2024-2025 marketing year, its harvest in Ukraine will be record high, which would potentially make it possible to export over 60% of it, UkrAgroConsult said.

In the current situation, Ukraine can benefit not only from demand on the part of key buyers, i.e. EU member states, Turkey, and Egypt, which will remain such in the new season as well, but also from their relative territorial proximity and the fact that such exports do not require shipping via the Red Sea, the analysts said.

The record of the past two seasons has clearly shown what logistical options, especially those involving shipping by sea, are best for exports, they said.

"The absence of import bans on the part of EU member states and the functioning of the provisional sea shipping route unilaterally declared by Ukraine give grounds to have quite an optimistic outlook for the upcoming season," UkrAgroConsult said.