Source: APKinform (Ukraine)
Despite the seasonal downturn in global market activity during the holiday period, Ukrainian soybean exporters are maintaining their positions. However, the global soybean market is facing a number of fundamental challenges, including a high global harvest and economic problems of China – one of the key importers. This is stated by analysts of the agricultural cooperative PUSK, established within the framework of the All-Ukrainian Agrarian Rada, the press service reported on January 8.
“Despite the difficult economic situation in China, which may reduce soybean imports to 95-100 million tons, the market demonstrates stability. Since August last year, prices on the exchange have been kept within stable limits, as well as short-term drops are quickly compensated. This shows that the exchange market has so far ignored global challenges. Of course, high global inventories add uncertainty, but the tendency for prices to recover remains. Ukrainian soybean exporters can use this period to strengthen their positions”, – experts believe.
They also noted that historically January, February and March show a tendency for soybean prices to rise, which is confirmed by the seasonal pattern. In this regard, they predict an increase in soybean prices in Ukraine already before the end of January.
“Already now we see an increase in prices: in the domestic market they have increased by 200-300 UAH/ton, and in currency terms – by $3-5 per ton. It can be predicted that the conditional prices on the basis of CPT will be $400-410 per ton in January, and in February-March will even exceed this level. This is a favorable period for agrarians planning to sell their products,” – summarized in the message.