Soybeans in Ukraine fall in price to 16,500-18,800 UAH per tonne in July - analysts

MOSCOW. July 23 (Interfax) - Soybeans continue to become cheaper in Ukraine, and the market operators voiced purchase prices for them within a range of 16,500-18,800 UAH per tonne CPT, which is 500-900 UAH per tonne lower than the figures seen in late June, Ukrainian media reported, citing the APK-Inform information-analytical agency.

"The decline in prices was mainly due to a lower demand for soybeans from the processing companies due to a reduction in soybean processing caused by the low attractiveness of prices for soybean meal/crude, the transition of plants to rapeseed processing, and the energy crisis, which severely hit the processing companies. In particular, this was seen in central regions, where tougher restrictions on power supply were imposed," analysts said.

Given the current situation, the volume of soybean purchases inside the country has drastically fallen, which subsequently resulted in a lower number of offers of finished products, they said.

At the same time, the downward price trend also persisted in the soybean exports over this period, though the pace of shipments increased markedly in July. Demand prices dropped by $20-$30 per tonne and were reported at $400 per tonne and higher with the delivery to the port. Meanwhile, demand prices for soybeans of the new harvest were lower by $20-$30 per tonne from the current price level for soybeans of the 2023 crop, which is largely due to the expectations of a record soybean crop in Ukraine in 2024, APK-Inform said.