Low demand puts pressure on prices for soybeans

For the week, export sales of soybeans from the United States decreased by 33% to 293,5 thousand tons despite expectations, at 0.6-1 million tons.

as a result, yesterday in Chicago soybean futures fell 3% to 316,5 $/ton, soybean oil – by 2.7% to 639 $/t, soybean meal – for $6.5/t to 348 $/t

In the beginning of the week the price of soybeans soared on the news about shipped to China two ships with American soybeans and update of Chinese consumer purchases of soybeans in the United States. However, this week China has not acquired any soybeans, and even refused previously contracted 694 thousand tons.

currently, the Chinese import price of U.S. soybeans with a 25% duty to the cost of Brazilian soybeans. However, traders believe that the Chinese government may increase the import duty on U.S. corn, soy or even prohibit its purchase through the strained trade relations between the two countries. Remarks of U.S. Secretary of Commerce about a possible renewal of negotiations with China as soon as next month has increased the pressure on prices.

Experts believe that in Q4 China will reduce soybean imports to 18-20 MMT vs. 24.1 MMT last year.

soybean Stocks in Chinese ports during the week fell from 9 million tons to 8.57 million tonnes, with Importers looking to replace U.S. soybeans until January, when the market received the new South American crop.

Due to low export demand for Ukrainian soybean price at the port dropped to 325-335 $/t After changes in the tax laws when exporting soybean traders are not buying the oilseed in the domestic market. In addition there are no soybeans that during the growing been in quarantine inspection and can be exported to China.