News
16.06.2016
Soybeans prices will rise
Despite record projected by USDA yields of soybeans in 16/17 MY at the level of 324 M tons which is +3% comparing to previous MY, prices continue to increase. The UCAB Association’s analysts’ initial estimations demonstrate 393 USD per a ton projected price in Ukraine for 16/17 MY which + 12% comparing to 15/16 MY. Record global overall yield expected due to increase of sowing areas by 2% up to 122 M ha and also – yield rate increase by 1% up to 2.6 tons per ha. Notable increase of yields expected in Brazil (+6 M tons or 6%), India (+4,3 M tons or +59%) and Uruguay (+1 M tons or +50%). Along with, decrease of soybeans productions is expected in the USA by 3% or – 3,5 M tons down to 103 M tons as a result of crops area decrease and yield rate narrowing.
“Despite record production, trade and consumption increase also and thus this will decrease transition stocks by 8% down to 66 M tons intending to bust prices”, - UCAB expert said.
According to the Association (UCAB) forecasts, Ukrainian entities will harvest record yield at the level of 4.2 M tons of soybeans in 16/17 MY. Average yield rate is projected at the level of 2 tons per ha – 10% higher than previous MY. Also, export is expected to rise smoothly to 2.4 M tons, along with record processing volumes at the level of 1.2 M tons – 22% more comparing to 15/16 MY.
Notice: grains prices forecast developed based on IFC materials on prices; global production forecast – USDA, Ukraine – UCAB.
