Kiev states soybean crop failure, agrarians expecting higher prices

MOSCOW. Aug 7 (Interfax) - Processing companies have intensified soybean procurement on the Ukrainian market amid serious problems with the soybean yield, Ukrainian media said, citing analysts from the Pusk cooperative society of the Ukrainian Agri Council (UAC).

"The yield of ultra-early soybeans remains very low in some regions, and the numbers are terrifying: 1.5-1.8 tonnes per hectare. The soybean market is highly illiquid. Plants have intensified their activity and soybean purchase prices have reached 18,000 hryvni per tonne in certain regions, which is proven by deals made by large processors. Plants understand that many producers will not sell soybeans at low prices due to the poor harvest and will expect prices to hit 20,000 hryvni per tonne or higher, while plants have contracts for production of oil and meal," the analysts said.

According to them, plants will try to buy soybean batches at a price of 17,500-18,000 hryvni per tonne as insurance for the new season.

Conditional prices for Ukrainian soybeans to be delivered on DAP Italy terms in September-October stand at 410-420 euros per tonne, Pusk said.