How long they will last strengthening prices for soybeans?
Despite the considerable amount of bearish factors, soybean futures in Chicago on September 1, weather news rose 3% to 355 $/t. the next decade, meteorologists promise a cool and dry weather, which contributes to the filling of corn, however, does not allow to realize the yield potential for soybeans, which in this period of needed moisture.
Within weeks, the number of crops in good to excellent condition remained unchanged at 61%. Weekly exports were down for the week by 12.54% to 644 thousand tons, which is by 47.68% lower than in the same period last year. Overall in the season 2016/17 sold on world markets 57,72 million tonnes (of 2.22 billion bushels) of soybeans by 12.06 per cent more than in 2015/16.
the Brazilian Ministry of trade reported a decrease in soybean exports from 6.95 million tonnes in July to 5,952 million tonnes in August. From the 10th of September, the country starts sowing soybean, and local farmers are planning to increase the 2017/18 season, the acreage under oilseeds is 2.5% to 34.7 million hectares as against 33.9 million ha of the previous season.
due to the increase in US import duties on biodiesel to 64.2% Argentine farmers expect a significant reduction in the price of soybeans, which is the main raw material in the production of biofuels. However, according to the Association Sociedad Rural Argentina (SRA), starting from August 23 the price of soybeans remain relatively stable.
Predstavnike the Argentine Association of oilseed CIARA reported that last season the United States purchased 7.5 million tons of Argentine soybeans, while exports of biodiesel in the USA was 1.9 million tonnes, or 90% of the total Argentinean exports.
SRA Analysts believe that the increased demand for soybean oil will allow Argentina to expand markets and to increase deliveries to China. So, 7 months of 2017 soybean oil exports to China amounted to 436,759 thousand tons, higher than 53% of total exports of Argentine soybean oil.