Facing moderate supply from farmers and rising sunflower and sunflower oil prices, Ukrainian processing plants are struggling to maintain operations at minimum profit margins. In response, some factories are turning to soybean processing, offering a more stable supply chain and potentially higher margins.

Market Shift to Soybean Processing

As the sunflower market faces challenges, processors are seeking alternatives to maintain profitability. Many have identified soybean processing as a viable option, allowing them to secure uninterrupted supply and better profit margins. "Switching to soybeans has become an alternative to maintaining profitability in the tough sunflower market," say industry insiders.

Sunflower Price Indicators

The latest buyer price indicators for sunflower are as follows:

• DAP Ukraine (factory): €428-437
• DAP Bulgaria (mid-point): €468-478
• CIF Bulgaria (port): €460-515

Soybean Processing Gains Momentum

Analysts note that competition in the local processing market for soybeans has been increasing. This trend is further confirmed by the growing number of processing plants that have shifted to soybean processing since the start of October. Total soybean processing volume in Ukraine is expected to reach 2 million tons this year. Simultaneously, Ukraine's soybean harvest has reached 4.2 million tons, with nearly 400,000 tons of the new crop already exported.

Recent Soybean Buyer Price Indicators

For GMO soybeans:

• DAP Ukraine (Odessa): $400-405
• DAP Italy (North) (train): €392-395
• DAP Italy (North) (truck): €400-405

For non-GMO soybeans:

• European routes: €445-485
• DAP Ukraine (Odessa):$470-480

With instability in the sunflower market, Ukrainian processors are finding profitability by transitioning to soybeans. This shift reflects the evolving strategies of processors in the face of changing market conditions, with the soybean sector offering a more reliable alternative for many businesses.





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