Prices for soybeans dropped despite the decline in production forecasts and reserves

Analysts had expected the July balance USDA soybean with a slight increase in forecast production in the world, and particularly in the US, will be neutral for the market. However, after the publication of the report, prices for soybeans fell by 2.3%, despite the pessimistic figures balance sheet.

Experts USDA increased compared to the June report from the global initial stocks of soybeans in 2020/21 MG, 0.48 million tonnes to owns 99.67 million tonnes, in particular in the United States with 0.95 million tons to 16.87 million tonnes, China by 1 million tons to 27.25 million tonnes, Argentina – 0.4 million tonnes to 26 million tonnes, while Brazil it was reduced by 2 million t to 22.77 million tonnes, thanks to strong exports in 2019/20 MG, although the forecast of production in the new season corrected to 126 million tons.

the Forecast of world soybean production was left unchanged at the level of 362,52 million tonnes, which is significantly higher than last year 337,14 million tons.

Analysts had expected a result of increased planting acreage and yield prediction of soybean production for the United States will increase to 114-115 million tons, but experts USDA raised its only 0.3 million tons to 112.5 million tons because productivity is left unchanged despite the good weather conditions in the United States. The estimate of soybean production in Canada and Uruguay have reduced due to adverse weather.

the Forecast of world consumption of soybeans increased by 1.82 million tonnes to 363,56 million tonnes, primarily owing to increases in China by 1.5 million tons to 113.4 million tons and the United States by 0.4 million tonnes to million tonnes. 62,46 Assessment of global trade in soybeans in comparison with the June report is almost not changed.

as a Result of increased consumption and reduced production world ending stocks of soybeans will decrease by 1.26 million tonnes to 95,08 million tonnes, while analysts expected them to increase 96,71 million tons.

Despite a bullish USDA report soybean futures in Chicago on Friday fell by 2.3% to 325,6 $/t after the Declaration of the trump that the 2nd phase of the trade deal with China may not be.