This season 2020/21, the soybean market in Ukraine gets support from the global oilseed complex as the latter faces, in particular, the exhaustion of soybean stocks in the main countries-exporters, UkrAgroConsult reports.
The weather factor and reports about more and more strikes in South America also make the market feel nervous. Nearby soybean futures price in Chicago remains at a six-year high.
Moreover, there are also a number of internal factors influencing current developments and determining the outlook for the latter half of the season in Ukraine.
The most weighty factor, which sets the tone for the entire season, is a harvest decline (-32% from last year) because of reduced acreage and low yield due to a hot, dry summer.
Domestic soybean prices similarly hit highs not only due to competition between exporters and crushers, but also, to a substantial degree, because growers are persistently reluctant to sell the commodity.