Cold and dry weather in the US and Canada raises prices for soybeans and soybean oil

2021-04-21 12:04:17
Machine translation
Cold and dry weather in the US and Canada raises prices for soybeans and soybean oil

Yesterday on the US stock exchanges, all agricultural products rose in price on forecasts of frosty and snowy weather in the coming days, which may damage spring crops and delay the sowing of soybeans in the United States and canola in Canada. And the quotes of soybeans and soybean oil once again updated multi-year highs.

 

On the Chicago SWOT, May soybean oil futures rose 5% to a 9-year high of. 1,290/ton, and on soybeans – 3.6% to the highest level since 2014–. 539/ton.

 

November soybean futures have risen 2.7% to понеділка 475/ton since Monday amid strong demand for the new crop and news about a possible delay in sowing.

 

The decline in soybean stocks in the United States caused by active sales led to an increase in domestic purchase prices for soybeans, which pushes up stock prices.

 

According to the Chinese customs service, in March the country imported 7.67 million tons of soybeans (including 7.18 million tons from the United States), compared with 4.27 million tons in March 2020, of which the share of American soybeans was 1.71 million tons.

 

However, Brazil continues to increase soybean exports and, according to customs, exported 10.6 million tons in the first three weeks of April, which is 30% higher than last year's pace. The Brazilian Association of grain exporters Anec raised its forecast for April soybean exports from 16.3 to 17.1 million tons, which will exceed the previous record of April 2020 - 14.9 million tons.   

 

According to Agrural, as of April 15, soybeans in Brazil are harvested on 91% of the area.

 

The Brazilian government has extended the preferential duty on imports of soybeans and corn not from Mercosur countries, which will open up an opportunity for deliveries from the United States and support quotes on American stock exchanges. Although during the period of such duties, no significant deliveries were observed in the first half of the year.

 

Against the background of an increase in soybean supplies from Brazil to the world market, exporters in Ukraine reduced demand prices for soybeans with GMOs to 4 495-510/ton or UAH 15800-16300/ton in the port, after which processors lowered purchase prices to UAH 17900-18100/ton with delivery to the plant.

 

However, export demand for non-GMO soybeans remains high, so exporters raised prices to 6 655-665/ton or UAH 20900-21000/ton with delivery to the port or border.

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