Prices for soybeans rose to a maximum of 2.5 years due to the delay of sowing in Brazil

If at the beginning of summer the price of soybeans has increased from 330 to 370 $/ton due to strong demand from China, now they are supported by dry weather in Brazil, which delays the sowing of soybeans.

Since the beginning of the week, soybean futures on the stock exchange in the United States increased by 3% to the highest in 2.5 years level 387,2 $/t

According to the USDA forecast, compared with last year the sowing area of soybeans in Brazil will increase by 4.3% from 36.9 to 38.5 million hectares, and the harvest will reach a record 131 million tons.

However, due to dry weather conditions, farmers can start sowing of September 15, so the pace of sowing is already inferior to the average, and precipitation will begin in the end of the week.

In the state of Mato Grosso, which is the largest producer, with soybeans planted 1.7% of the planned areas, compared to 6.6% at that date in 2019, and 9.6% on average for 5 years. In the second state of origin paraná soybean planted on 8% of the area compared with 30% on average for 5 years.

Late planting will delay the harvest and the beginning of exports, so, according to experts, China currently, will resume purchases of U.S. soybeans, which for November-December, he needs to import at least 3.5 million tons.

Brazil in August exported 4.6 million tons of soybeans in September – 4.47 million tons, of which 2/3 have purchased the China. Due to the increase in exports to China, USA in August shipped 2.45 million tons of soybeans, which is high for this period.

Argentina in September has reduced the export of soybeans to 170 thousand tons compared to 968 thousand tons in August and 1.6 million tons in September last year due to reduced exports to China to 119 thousand tons compared to 895 thousand tons in August and 1.5 million tonnes in September 2019.

Due to a lack of soybeans in Argentina and Brazil, due to active exports to China, spot prices rose to 420-440 $/t FOB. After rose American soybeans, and the price of soybeans for delivery in China before the start of the long weekend reached the level of 450-460 $/t C&F.

In Ukraine, purchasing prices for soybeans growing in the world against the background of reduction of the crop. Refiners raised prices by 100-200 UAH/t to 13800-14200 UAH/t with delivery to the plant, whereas the exporters have raised prices by 10-15 $/t to 410-415 $/t or 13900-14000 UAH/MT for soybeans with GMOs and 430-445 $/t or 14600-14900 UAH/t for soybeans non-GMO.

Trailers await updated balance USDA, which can reduce the initial stocks due to their reduction in the United States and Brazil, as well as to adjust the crop forecasts for Argentina and Brazil, through the arid conditions before planting.