China is stepping up imports of cheap soybeans from Brazil than lowers prices for U.S. soy

According to estimates by Oil World, Chinese buyers have sharply stepped up imports of soybeans from Brazil, for fear of the possible logistical problems associated with the spread COVID-19.

In March, Brazil exported to China 4 million tons of soybeans, accounting for 70% of 5.85 million MT shipped in this direction in March 2019, But in General Q1 shipments rose to 14.6 million tons compared to 12.2 million tonnes in Q1 2019 and 10.4 million tons in the 1st quarter of 2018.

the Total volume of exports of soybeans from Brazil in March was 11.6 million tonnes, which is 37% higher than exports in March 2019

In the first two weeks of April, Brazil exported 6.3 million tons of soybeans, which is 50% higher than in the same period in March. The intensification of exports is due to the high demand from Chinese processors, which Brazil is trying to satisfy by active harvesting of soybeans, which as of 9 April it had collected from 89% of the area.

the Demand for Brazilian soybean support prices are lower than in the us. According to S&P Global Platts, as of April 13 Brazilian soybean was proposed to put in may 340,72 $/MT FOB Santos, and American – in 344,01 $/t FOB New Orleans.

soybean Futures in Chicago fell to three-week low 313,8 $/t

the Low demand for U.S. soy continues to put pressure on prices. For the week, export sales of soybeans from the United States decreased by 45% to 523,5 th T. Experts expect that this weeks sales will not exceed 500 thousand tons, and demand from China will grow only in the new season, when Brazil completes the export of soybeans.

the supported data rates NOPA, according to which in March in the US was revised to 4.94 million tons of soybeans, which is 6.7% higher than March 2019

In Argentina due to the increase in water level in rivers and the restoration of the movement of barges improves supply logistics in the ports of soybeans that activates the export of soybeans and soybean meal.

In Ukraine, despite the decline in world prices, processors to raise volume raise the purchase price of soybeans in 11500-11600 UAH/t with delivery to the plant, while export prices at the port remain at 360-365 $/t Manufacturers keep sales on the background of gradual growth of purchase prices.