The IGC reduced the forecast of soybean production, however, increased the estimate of consumption

2019-07-29 12:04:55
Machine translation
The IGC reduced the forecast of soybean production, however, increased the estimate of consumption

Experts IGC has lowered the forecast of world soybean production in 2019/20 MG compared to the previous estimate of 1 million tonnes to 348 million tonnes, primarily due to the deterioration of crop prospects in the United States.


IN 2018/19 MG in the world has collected a record 363 million tons of soybeans, and the crop in 2019/20 Mr experts USDA in the July report estimated at 347 million tons.


Assessment of the global consumption of soybean has increased by 1 million tons to a record 359 million tons, which is 2% higher than the figure recorded 2018/19 Mr and projected in the July balance USDA 355 mln tonnes


the Volume of world trade in soybeans in comparison with expectations June will be reduced to 151 million tons, which corresponds to the level of the previous season.


the slowdown in world output had not yet affected the price of soybeans, since the dynamics of growth limits to the reduction of demand from China due to the spread of ASF. The decline in demand was confirmed by the drop in export sales from the United States.


soybean Futures in Chicago traded at 330 $/t


Traders expect the August balance USDA with the final estimates of acreage and an updated forecast of production, which can significantly affect the market.


the European Commission has lowered the forecast of rapeseed production in EU countries in 2019/20 Mr from 18.7 to 18 million tonnes and increased the valuation of imports by 0.5 million tonnes to 5 million tonnes compared to 2018/19 MG rapeseed crop will fall by 10% due to reduced acreage by 15% to 5.9 million hectares.


But despite preliminary forecasts of production cuts, the price of rapeseed on Euronext actively started growing only now and the end of the week rose 1.5% to 379,75 €/t or 422,5 $/t supports the reduction of the yield of rapeseed in Ukraine from the projected 3.5-3.9 million tons to 3.1-3.2 million tonnes, significantly short exports to the EU.

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