Record production of 7.5 million tonnes of soybean estimated in Russia

29-Jul-2024 05:05 PM

Moscow. A leading agricultural consulting firm has estimated that soybean production in Russia will increase to a new record level of 7.5 million tonnes during the current year, which will increase the supply of raw material to crushing-processing units.

Last year, about 6.2 million tonnes of soybean was crushed in Russia, which can reach 6.4 million tonnes this year. On the other hand, the Ministry of Agriculture of Ukraine has expressed the possibility of producing 5 million tonnes of soybean in the 2024-25 season.

Soybean futures fell to a one-month low on the Chicago Board of Trade (CBOT), the main reason for which is believed to be profit booking by investors and improvement in weather conditions in the US. The price of rapeseed / canola is rising in the Black Sea region. 

On the other hand, palm oil stocks are increasing in major producing countries while transportation concerns are decreasing. As a result, there is a possibility of an overall reduction in shipment costs from Indonesia and Malaysia.

Due to this, the price difference between palm oil and sunflower oil will increase and palm oil will become more attractive.

Heavy customs duty has been imposed on Russian sunflower oil in Europe, which will benefit Ukrainian exporters there, but India may continue to import heavy sunflower oil from Russia and Romania. 

Vegetable oil production is likely to decrease in the European Union, due to which there is a possibility of an increase in the import of soybean oil and sunflower oil as well as rapeseed-canola oil. Indonesia and Malaysia will also try their best to increase the export of palm oil there.

The condition of canola crop in Canada is said to be good. The bid for crude rapeseed oil is running at 830-840 euros per ton for Europe and $1010 per ton for shipment to China. The manufacturing price of rapeseed in Ukraine is said to be 485-500 euros per ton.