Soybean futures in Chicago fell to 4-month low

Yesterday in Chicago soybean futures fell 2.1% to 4-month low 326,3 $/t due to the sharp devaluation of the Argentine and Brazilian currency, which reduces export prices for South American soy.

Argentine peso fell yesterday by 2% overall in March and 13.2%. The Brazilian real lost 2.3 percent for the day and 7.2% for the month.

the Old crop U.S. soybeans has not sold out, and the markets are already active in the new crop arrives from South America, increasing competition. The demand from China remains low due to significant reductions in the number of pigs.

in anticipation of the release of U.S. inventory reports on 1 Mar and acreage in the new season, analysts publish their own projections.

According to estimates by the Wall Street Journal, stocks of soybeans in the U.S. on March 1, rose to 74 million tonnes compared to 57.4 MMT on this date last year, while the area sown declined from 89,196 to 86,191 million acres. However, floods in the Midwest and cool weather delayed corn sowing, which can lead to an increase in area under soy.

the price of U.S. soybeans weighs the lack of demand from China, although his promise to buy 5 million tonnes and 10 million tonnes is still not fully implemented.

soybean Market affect the dynamics of the prices of other oilseeds.

Palm oil in Malaysia is trading at 525 $/t with the support of an active export demand.

Low palm oil prices put pressure on the purchase price of Ukrainian sunflower oil, which fell to 650-660 $/t FOB, which in turn have increased demand. In January-February Ukraine produced 961 thousand tonnes of crude sunoil, which is 8.8% higher compared to the corresponding period in 2018.

activates Argentina exports soy and sunflower oil. In February, 2019 in comparison with February of 2018, the exports of soybean oil doubled to 404 thousand tons, sunflower oil – three times to 58 thousand tons.