Oil World predicts decline in soybean prices
According to forecasts of analysts of Oil World, in the near future on the world market of soybeans can be set decreasing price trend.
As specified, one of the main factors that form a specified trend and puts pressure on prices, there is a high global stocks of soybeans, primarily in South America and in the United States where they are until the end of August can reach the maximum level for the last 10 years.
In addition, import activity in China in the coming months may decline amid record-high inventories of products that have accumulated at Chinese ports awaiting unloading. Also the soybean crop to China in 2017, according to analysts, could rise to 14.5-15.3 million tons. For the first time in many years in 2017/18 MG external purchases of the oilseed by China, most likely, will not rise.
Potential to reduce prices will contribute to lower than previously estimated, the processing volumes of soybeans due to weak global demand for soybean meal.
Another factor contributing to the decline in world prices for soybeans will be the expected increase in world production and supply of palm oil in the second half of 2017.
The price of soybeans in Chicago for the month rose from 9.2$ to 10$ per bushel (or 369 us$/tonne) because of the hot weather in the U.S., which could lead to lower yields. But better weather in the coming weeks will be able to significantly change the situation on the soybean market in the U.S. and then the world.