Ukraine: growth of soybean processing capacities to increase the competition for oilseed raw materials - APK-Inform

Source

APK-Inform

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According to APK-Inform figures, in the season-2015/16 the processing volumes of soybeans at oil in Ukraine increased to 1.15 mln tonnes, as opposed to 1 mln tonnes in 2014/15 MY (up 14%), due to modernization of the existing processing lines, and increasing of the production capacities through launching of a new large factory of LLC Katerynopilsky Elevator at the agricultural holding Mironivsky Hliboproduct. The daily capacities total 1`000 tonnes.

According to market participants, further enlargement of the processing capacities of soybeans in the country will increase the competition rates for oilseed raw materials, and develop further growing of price volatility.

At the same time, the marginality of soybean processing is one of the most important factors on the market: if the marginality is low, the processing volume of oilseed raw materials will decrease, which will decline the demand for soybeans and reduce the market liquidity rates. At the same time, the exports of oilseed raw materials will not significantly change the situation.

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