Ukrainian soybean prices continue to decline

MOSCOW. Feb 28 (Interfax) - Soybean prices in Ukraine have fallen by UAH 1,500 per tonne over the past month down to UAH 16,500 per tonne, which is due to a drop in global prices for it, Ukrainian media reported, citing the Ukrainian Agrarian Council's (UAC) Pusk analytical cooperative.

"Soybean prices in Ukraine have been actively declining over the past month. If by the end of January processing companies were buying soybeans at a price of over UAH 18,000 per tonne, at the end of January price tags do not exceed UAH 16,500 per tonne. Cheaper Ukrainian soybean is due to the fall in global prices for oilseeds," analysts said.

In February, Ukraine has exported 290,000 tonnes out of the contracted volume of 300,000 tonnes, they said. Traders find it difficult to sell Ukrainian soybeans for export due to its high price, the statement said.

The major markets for Ukrainian soybeans, which usually account for 50%-60% of exports, are Turkey and Egypt. However, while in these countries a tonne of Ukrainian soybeans has always been $10-$15 cheaper than Brazilian soybeans, now the prices have not only leveled off, but the Ukrainian product will continue to decline.

"Global prices for oilseeds are falling, which is facilitated by a record harvest in Brazil, forecasts of a high harvest in Argentina, large stocks of soybeans in the United States," experts said.

They forecast that if on the DAP Poland-Romania basis the conditional prices for soybeans are at $420 per tonne, they may go down to $390 per tonne by the end of March. Additionally, processing companies have lowered purchase prices per tonne in the range between UAH 16,500 and UAH 16,800, by the end of March the price drop may reach UAH 16,000 per tonne.

"Another factor that supports the decline in prices for Ukrainian oilseeds is the fall in prices for soybean meal in the European Union. Additionally, Poland used to be the main importer, but now this country is not the best trading partner," Pusk said.