Ukrainian Soybean Prices Faces Pressure

Ukraine’s soybean market has been experiencing a gradual price decline, largely influenced by an increase in farmer sales. Many agricultural producers are offloading their soybean stocks to secure liquidity ahead of the upcoming sowing season. The surge in supply has put downward pressure on domestic prices, despite steady demand from processors and exporters.

As of mid-March, domestic soybean prices (for genetically modified varieties) range between USD 0,41 - 0,42 per kg on a CPT basis. However, many processors have already built up reserves and are offering below-market prices, further dampening the domestic price.

Additionally, the current exchange rate fluctuations and logistics challenges have impacted the profitability of domestic sales, as transportation costs continue to rise due to geopolitical tensions.

Export Market Provides Some Support

While domestic prices are under pressure, export market trends remain somewhat positive due to strong international demand. Buyers from Turkey and EU nations have been actively purchasing Ukrainian soybeans, supporting export prices in ports.

Despite global market uncertainty, demand for Ukrainian soybeans remains stable, particularly as EU countries seek alternative suppliers amid trade restrictions with other major producers.

Future Price Predictions

The coming weeks could bring further adjustments in soybean prices, depending on:

• Export demand fluctuations from Turkey and EU buyers.
• Domestic processing capacity and stock levels among crushing plants.
• Global oilseed market trends, especially regarding soybean production in South America and US planting conditions.
• Potential currency volatility affecting trade competitiveness.

If export demand remains strong, it could help stabilize prices, preventing a further sharp decline. However, if domestic supply continues to rise, processors may lower their bids further, adding to price pressure in the local market.

For now, farmers will need to carefully assess market conditions before making further sales decisions, as international trade remains a key factor in determining future price trends.