Low demand for soybeans weighs on prices
the May soybean futures in Chicago yesterday fell 1.8% to 331,9 $/t on the news about reduction of consumption of China due to losses of livestock from ASF.
Favorable for good soybean crop weather in South America also puts pressure on prices.
In the US, in the rain and cold delayed planting corn, with the result that the acreage under it can cut in favor of soybeans, which has a later date of sowing.
Friday's report USDA with the balance of world supply and demand for soybeans, traders expect changes in the forecast of soybean production in Brazil and reduce consumption for China. Evaluation of soybean production in Brazil can reduce from 117 to 115.5 mln t and for Argentina to increase from 55 to 57 million tonnes.
most attention is focused on the forecast of consumption and imports of soybeans by China. The Chinese Agency JCI has reduced its forecast of soybean imports at 12 million tons to 89 million tons, which corresponds to the USDA forecast in February. The reduction in the number of pigs from ASF import forecast of corn, sorghum and DDGS reduced by 40%.
In Ukraine, prices for soybeans collapsed under the pressure of low export demand. In the port price for soybeans with GMOs dropped to 318-320 $/t 335-340 $/t two weeks ago. Due to the strengthening of the hryvnia processors lowered the purchase price by 200-300 UAH/t to 9500-9900 UAH/MT for soybeans with GMOs and 9500-10000 UAH/t for GMO-free soy protein with a minimum of 37.5%.
the Increase in the supply of South American soybeans new crop decrease of export prospects of Ukrainian soybeans in the markets of Turkey and Belarus.