Improvement of crops in Argentina lowers prices for soybeans and vegetable oil

Precipitation, held in Argentina last week and will continue for another 7-10 days, lower world prices for soybeans and soybean complex, as well as neighboring markets of vegetable oils.

Strikes and drought last month has led to a sharp increase in prices for soybeans and oil, so the disappearance of the factors allowed the quotes back to initial levels.

According to the exchange BAGE, Argentina's soybean planted 98.6% of the planned areas, and in the flowering stage are 46% of crops, while a year ago the figure was 55.6 per cent. The number of crops affected by drought, for the week decreased from 32% to 13%, and in good or excellent condition are 89.6% of the crops.

the March soybean futures on the stock exchange in Chicago on Friday fell by 4.5% to 479,5 $/ton, losing half of the growth that began in December against the background of strikes in Argentina. Profit taking hedge funds and sale of futures have fallen off the market, that once again confirms the speculative factor of price growth in recent years. Futures for soybean meal declined by 2.4% to 462,8 $/t, for soybean oil – by 1.7% to 930,5 $/t

Prices have not supported the increase in export sales of soybeans from the U.S. for the week almost doubled to 1.82 million tonnes and sales of 831 thousand tons of soybeans new crop as well as the growth of actual exports by 16.6% to 2,379 million tonnes IN 2020/21 MG USA exported of 43.3 million tonnes projected by the USDA 60.7 million tons.

Argentina in December reduced the volume of soybean processing in comparison with the average 5-year rate 70% to 808 thousand tons, while in December 2019 he reached 2.75 million tons In the whole, in 2020 the volume of processing made the slightest since 2013 35,86 million tonnes, although the average 5-year average is 41 million tons.

the April futures for palm oil exchange in Malaysia on Friday remained at the level of 3282 Ringgits/t or 812 $/t, but in General the weekly drop was 4%.

According to the Association of palm oil producers, Malaysia 20 days reduced exports of palm oil by 42% and production by 21% as rains delay the harvest, although the increase.

In Ukraine the prices for sunflower oil fell to 1230-1260 $/t FOB, as a result purchasing prices for sunflower delivered to the factory fell to 21500-21800 UAH/t

the Fall in world prices for soybeans will increase the pressure on purchase prices, which are rising due to a lack of offers. However, after the price reduction by the exporters, the processors also lower the demand price.