Falling demand and increasing harvest lowered the price of soybeans

Yesterday, the July soybean futures fell 2.5% to a minimum of 6 months 322,4 $/t due to the increase in crop prospects in Argentina, drop of demand from China and slowing of exports.

More on prices pressured the slow pace of planting corn in the U.S. due to powerful rainfall, which may increase the acreage under soybean. Although the U.S. Agency IEG Vantage has reduced the forecast of sowing areas of soybeans with 86,04 million acres in February to 85,49 million acres in March.

Experts grain exchange Rosario raised the preliminary estimate of soybean production in Argentina in 2018/19 MG for 4 million tonnes to 56 million tonnes, which corresponds to the forecast of the Ministry of agriculture of Argentina - 55,9 million tons and USDA – 55 million tons.

Brazil has harvested soybean from 92% of the area, but the rate of export of oil are falling because of falling demand.

Weekly soybean exports from the U.S. fell to 382,3 million tonnes, which is far below the level of the previous week and expert expectations. China has dispatched one ship with soy.

Announced last week the purchase of state-owned Chinese companies 2.5 million tons of soybeans from the United States did not take place and the date of the signing of the trade agreement between the US and China, postponed indefinitely. Ban USA on the purchase of Iranian oil mainly in China and India, which further increases the tension between the two countries.

the Demand for soybeans and other forage crops in China continues to decline following the reduction of the pig stock. According to the report USDA until the end of this year, the number of pigs in China will decrease by 19% to 374 million head due caused by Achs reduction of breeding stock.