The current season of 2016/2017 features a bumper soybean harvest in Ukraine, which is estimated by analysts at 4 MMT.
At the same time, the crusher interest in soybeans is declining. The main reason is decreased domestic demand for soybean products, primarily soybean meal as a basis for poultry feed. Statistics show a downward trend in poultry inventories. They sank by almost 2% YoY (195,117 thousand head as of February 1, against 198,964 thousand head a year ago).
It’s not that crushers have totally rejected soybeans, but the current season sees a slump in soybean oil production.
Despite the current situation in Ukraine’s crushing sector, soybean growers face no particular problems with oilseed sales. In view of heightened interest from traders, the producers easily have the upper hand when selling the commodity. In turn, the exporter interest is fueled by favorable prices in the external soybean market. (UkrAgroConsult/Business World Magazine)
