AUSTRALIAN soybean producers are set to benefit from near record international soybean values as the calendar moves closer to the southern hemisphere harvest.
As with all grain commodities soybeans have seen sharp gains since the start of the Ukraine war.
While soybeans are not a widely grown crop in either Russia or Ukraine, the two nations are big sunflower producers which have a big impact on global vegetable oil prices.
Sunflower oil accounts for around 15 per cent of all the world trade in vegetable oil, so without those supplies out of the Black Sea markets are looking at alternatives, including soybean oil.
There is significant volatility in the Chicago Board of Trade futures contracts at present, but prices continue to rebound to trade near record values after sustaining falls.
On Tuesday, the price sat at US1657 cents a bushel, which translates to around $A845 a tonne.
It is music to the ears for those involved in Australia's boutique soybean industry, which is primarily focused on subtropical regions in NSW and Queensland.
Last year around 44,000 tonnes of the crop were produced, with most of the product sent to domestic crushers.
Commonwealth Bank analyst Tobin Gorey said in a column that the Black Sea was not the only consideration for the soybean market.
The South American crop is set to be below average, however rain in recent weeks meant Mr Gorey said the market was no longer at risk of imminently further cutting supply estimates and placing upward pressure on prices.
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