Soybean Market Update – June 2022 (Farmer version)

Global outlook

Brazil new crop soybean plantings are pegged at about 85% planted. Argentina crop production
forecasts have risen as major growing areas receive good rains over the last month.

US / Brazil and Argentina soybean export prices are all currently down roughly $5 / mt whereas the
soymeal prices are up from between $5 to $10 from May 2022. July FOB prices for Brazil / Argentina
soybeans at $663 and $640 respectively. For soybean meal July FOB prices for Brazil / Argentina at
$481 and $464 respectively.

On the edible oil markets, Asian markets are all trading lower from the previous fortnight with
Malaysian palm currently trading in the range of $1,210 FOB (two weeks ago $1,517). The vegoils
markets continue to fall on reduced demand, Indonesia's continued exports and renewed losses in
crude which is trading at 4-week lows. Most Asian markets are at 2-3 month lows but palmoil is now
at a 5-month low. (source: Fryers)

Continued conflict between Russia and Ukraine has impacted the ability for crushing facilities to
process sunflowerseed in Ukraine. As a result, the 2021/22 sunflowerseed crush forecast is reduced
1.5 million metric tons from last month’s forecast to 10.5 million. In response to limitations on crush,
Ukraine has adjusted by exporting larger quantities of sunflowerseed than previously expected.
Consequently, the 2021/22 Ukrainian sunflowerseed export forecast is raised by 650,000 metric tons
to 1 million with the European Union expected to receive much of this increase (source: USDA)

India

GM (Genetically Modified) Soybean meal from South America still covering the Indian demand.
Deadline for imports remains end of September 2022 when the import allocation granted by
Government will expire.

New crop soybean plantings are underway however there are fears production will be negatively
affected due to the late and poor performance of the Monsoon rains thus far. The MET in India
remains optimistic that the rains will improve going forward into July. The Zambian and Malawian
markets will have to wait and see how the Monsoon rains perform before potential opportunities
open up on both soybeans and soymeal. This will most likely become apparent around August /
September.

Strategic Support Financial Advisory Project Coordination

India will allow a limited quantity of duty-free imports of crude soybean and sunflower oils for two
years, another step in a series of measures the country has taken to cool surging food prices. The
government will permit purchases of 2 million tons each of the two vegetable oils per annum this fiscal
year and the next, according to a notification by the finance ministry. Inbound shipments under the
quota won’t require any customs duty or the agriculture infrastructure and development tax. (source:
Bloomberg)

Zambia

Government announced they would be buying soybeans from farmers at ZMW 11/kg ($630/mt) for
this season which is higher than the current market. Currently brokers are paying between ZMW 8-10
/ kg ($467 - $585/MT). There is a strong likelihood the bean and soymeal prices will come off even
further so if you can get beans into the market now is a good time to sell.

Malawi

Prices delivered into the markets in Lilongwe / Blantyre are in the region of $700/MT. Crushers believe
this price to be too high to be competitive in the regional markets especially for their sales of soybean
meal. Given the above it would be good to get one’s product into the markets while prices are still
attractive as crushers are looking to reduce their prices.

Mozambique

Current delivered warehouse / mill price in the region is approximately MZN 38-40 / kg ($590 -
$621/MT). If the prices start to drop in Malawi this will have a downward effect on the soybean prices
in Mozambique. Suggestion is to sell while price levels are still attractive.

General comment: soybeans and soybean meal sales ex Zambia and Malawi in the coming months will
depend largely on what size crop comes off in Uganda and at what levels they will be trading. Most
likely Uganda will trade at a slight discount to the products from Zambia and Malawi. External markets
remain uncompetitive for the time being. Next possible opening will be from September onwards.

We remain available should you require any additional information.

Kind regards

Bruce Hillier

Strategic Support Financial Advisory Project Coordination