The purchase of soybeans by China support prices for soybeans and oil

2020-08-03 12:21:56
Machine translation
The purchase of soybeans by China support prices for soybeans and oil

Last week, the U.S. markets showed record sales of corn and soybeans, primarily to China, despite the political tension between the countries.

 

For the week, export sales of soybeans from the United States amounted to 3.6 million tonnes, of which China – 2 million tonnes Just in July, the US implemented export record for the month to 7.6 million tonnes, mainly due to Chinese buyers.

 

According to forecasts АDМ, in the current season China may import 95-96 million MT of soybeans. With the beginning of the year he has already acquired 70 million MT of South American soybeans, and to the end of the year plans to purchase an additional 20-25 million tons of soybeans from the United States.

 

However active sales of soybeans did not affect significantly prices, which earlier in the week down 1.5%, and then recovered to 330 $/t. the market expects the USDA report, which will be released August 12, will raise the forecast of soybean production for the United States.

 

Futures soybean oil on the stock exchange in the United States on Friday rose 3.5% to 2-week high of 685 $/t on data on the increase in demand for soybean oil from biodiesel manufacturers.

 

In may, the total consumption of biodiesel in the United States declined compared to the same period last year by 6% to 503 thousand tons, while the soybean oil by the biodiesel producers during this period increased by 18% due to the reduction of consumption catering establishments, do not work because of the pandemic, Covid-19.

 

After the restoration of Argentine factories that were closed due to flash Covid-19, the prices of Argentine soybean oil dropped to 730-740 $/t FOB.

 

Prices for rapeseed oil in Europe after the updates on Wednesday 5-month high, fell against the backdrop of increasing income from the new harvest and the strengthening of the Euro to 780-790 €/t DM FOB for shipments in August-September.

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