Prices for soybeans continue to rise in anticipation of a new USDA report

2021-01-11 12:05:46
Machine translation
Prices for soybeans continue to rise in anticipation of a new USDA report

Last week, the price of soybeans on the US stock exchanges have grown on the background of the strike and a drought in Argentina, as well as in anticipation of a new balance of supply and demand, USDA.

 

the March soybean futures on the stock exchange in Chicago rose to 6.5-year high 506,7 $/t on the news about another sale of U.S. soybeans to China and forecasts of reduced production in South America.

 

Some analysts expect from a new USDA report reducing estimates of harvest of soybeans and corn in the U.S. in 2020, which will lead to a reduction in ending stocks and higher prices.

 

In the case of a reduction of ending stocks in the U.S. prices for soybeans will continue to grow because China will buy American soybeans because of the uncertainty with the harvest in South America, where there is a shortage of rain. According to analysts, over 60% intended for export of Brazilian soybeans already contracted, so any decrease in the crop forecasts will lead to growth of quotations.

 

on Friday, the USDA confirmed a sale to China 204 thousand tons of U.S. soybeans, marking the first sale in China, announced through the daily reporting system the USDA from November 6.

 

According to the average estimate of analysts, the forecast of soybean production in the U.S. in 2020 will be reduced and the estimate for ending stocks in 2020/21 MG dropped another 8% to 3.65 million tons, causing world ending stocks will shrink by 1.7% to 84,2 million T.

 

analysts Also expect lower forecast of soybean production in 2020/21 MG in Brazil by 1 million tonnes to 132 million tonnes and Argentina by 1 million tonnes to 49 million tonnes.

 

it is not clear, will increase the experts, the USDA forecast soybean imports by China more than 100 million tonnes, as against the background of rising prices China is not very active in buying soy, and only problems with the crop in South America can once again step up purchases.

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