Low prices for Ukrainian soybeans prompt competition among traders and processors - analytical center

MOSCOW. Oct 11 (Interfax) - Ukrainians corn and rapeseed at attractive prices is being purchased only in ports of European Union countries, but exporters and processing enterprises have to compete for Ukrainian soybeans on external and internal markets, Ukrainian media said, the Pusk cooperative analytical center, set up by the Ukrainian Agrarian Council.

The fact that Ukrainian corn is being sold at attractive prices is due to the low amount of export via Black Sea ports, the center's analysts said.

"Only 5-10 out of 35 chartered vessels are loaded with corn. The other ships export wheat. Therefore, prices for this crop at the Odessa ports vary from $105 to $115 per tonne. In smaller ports, corn costs $120-$130 per tonne. In the ports of Italy and Romania, the price is better - $185-$192 per tonne. That is why, exporters look for low-cost train cars for exports at long distances," they said.

The situation on the rapeseed market is similar, the analysts said. It is profitable to sell rapeseed only in Riga's port. Larger profit can be generated only if rapeseed is delivered from Ukraine's northwestern regions. Otherwise, rapeseed can be sold only at prices that do not exceed the cost of production. Ukraine is placing hopes on the German market, where demand for rapeseed has been on the increase recently.

Soybean prices hit an all-time low in September, but began rising recently due to domestic demand, the experts said.

"Today exporters are ready to buy a tonne of soybeans at a factory in Ukraine for 13,500 hryvni. And it is possible for sell the crop to processing enterprises inside the country for 15,000 hryvni [per tonne] already. Therefore, producers may think of selling soybeans to oilseed meal producers," they said.

Soybeans cost $365-$367 per tonne in Ukraine's Danube ports as of mid-October, and $380-$400 per tonne in Poland and Romania, they said.

Soybean prices are expected to grow by $5 in Ukrainian ports and by $15 in European ports in early November, the Ukrainian Agrarian Council said.