High Demand Drives Record Processing

In December 2024, soybean processing in Ukraine reached 250,000 tonnes, maintaining the same high level as November. Processors prioritized soybeans over sunflower due to stronger demand and more favorable pricing.

From September to December 2024, Ukraine processed a record-breaking 867,000 tonnes of soybeans, surpassing the previous record of 665,000 tonnes during the 2019/20 marketing year.

Factors Supporting High Processing Rates

1. Record Harvest: Ukraine harvested 6.2 million tonnes of soybeans in 2024.
2. Rising EU Demand: Soybean meal demand surged in markets like Poland and Hungary.
3. Sunflower Shortage: Limited sunflower supplies and high prices redirected processors toward soybeans.

Strong Export Performance for Soybean Meal

Ukrainian soybean meal continues to find strong demand in the EU. Between September and December 2024, Ukraine exported 284,000 tonnes of soybean meal, marking a 14% increase compared to the same period last year.

However, the domestic market faces challenges, including an oversupply of soybean meal and cake, driving export prices down by approximately USD 100 per tonne to DAP-western border rates. This drop is influenced by falling global soybean prices and increased competition from South American soybean meal in the EU market.

Export Logistics and Challenges

Export logistics for processed soybean products differ significantly from sunflower products:

• Over 90% of soybean meal exports are transported by land to Poland and Hungary.
• Waterway shipments have increased to 11% since November 2024, alleviating some logistical constraints.

Border closures remain a critical concern for land-based exports, making the market sensitive to geopolitical and logistical challenges.

Conclusion

Ukraine's soybean processing sector is thriving due to a record harvest and rising EU demand for soybean meal. However, the market faces challenges from oversupply, lower export prices, and logistical dependencies on land routes. Processors must navigate these hurdles while capitalizing on strong demand to maintain momentum in the 2024/25 marketing year.





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