Prices for soybeans are growing because of the shortage of rain in South America

the decline of precipitation forecasts in South America and increasing recycling in the U.S. soybean quotations on US exchanges since the beginning of the week rose 2% to a 4.5 year high for the month has risen by 6%.

the Optimism of new vaccines has led to a rise in oil prices and stock indexes, which coincided with the data about the increase of soybean in the U.S. in October at 5% and caused the rise in price of soybeans and soybean oil.

Yesterday, the January soybean futures rose 0.5% to $430/ton, and soybean oil fell to 826 $/ton, as traders booked profits after the rapid growth in prices the day before.

Reduction of forecast precipitation in South America is prompting speculators in relation to procurement, resulting in amount of long positions for the week rose to 6717 221094 contracts.

According to AgRural, in the Western regions of Brazil due to the recent rainfall sowing of soybean was accelerated, whereas in the major States producing Mato Grosso, paraná, Rio Grande do Sul and Sao Paulo drought conditions delayed sowing, and the level of soil moisture remains below normal.

As of November 12 in Brazilian soy planted 70% of the planned areas compared to 56% a week ago and 69% a year ago.

Thanks to active exports for half of November shipped to 935 thousand tons of soybeans, while traders had planned to ship as a whole in November 700-800 thousand tons of oilseeds. Acceleration of sowing and high prices for soybeans at the level of 480-490 $/t FOB Brazil ports to boost sales from producers.

Prices for U.S. soybeans remain at 470-480 $/t FOB, since their height restricts the lack of purchases from China. Soy in the USA is collected on 96% of squares, and the weekly exports amounted to 2.24 million tons.

In Ukraine as of 16 November, 95% of the area collected a total of 2.6 million tonnes of soybeans compared to 3.7 million tonnes last year. A shortage of supply increases competition between exporters and processors, and raises purchase prices to record levels. Exporters at the port offer 515-520 $/t or 17200-17400 UAH/MT for soybeans with GMOs and 520-525 $/t or 17400-17600 UAH/t for soya without GMO, whereas processors pay 17000-17300 UAH/t with delivery to the plant.

the Increase in soybean prices increases the cost of the meal and feed for livestock, the products of which while in Ukraine becomes more expensive due to the low purchasing power of the population, which has suffered from crisis.

the Main reason for the growth in global demand for soybean and corn was the restoration of a livestock of pigs in China, where the average price of pork for the year decreased by 18.6% to 47.66 yuan/kg or 7.2 $/kg.

In January-August China imported of 5.96 million tonnes of meat, mostly from the United States and Brazil by 5.06 million tons more than imports 2019. According to the agriculture Ministry of China, at the end of the 3rd quarter 2020 the number of pigs in the country increased to 370 million heads, which is 84% of the population at the end of 2017, when there was an outbreak of ASF. The country continues to increase pork production and reduce its import.