Despite a neutral USDA report, the price of soybeans fell

March balance of soybeans from the USDA compared with the previous has not changed, because world production is reduced 0.9 million tons, while consumption increased by 1 million tons.

the estimate of soybean production for Brazil and Paraguay reduced 0.5 million tons each, while traders had expected a more significant reduction of harvest and production growth in Argentina.

For China, the estimated consumption of soybeans reduced by 1 million tonnes, while the import forecast was left at the level of 88 million tons due to reduced import canola from Canada through the complicated relations between the two countries. While the Ministry of agriculture of China has increased its forecast of soybean imports with 83,65 to 85 million tons.

Despite a neutral USDA report, soybean futures in Chicago fell by 1.3% to 328 $/t even on the news about China buying another 2 million tons of soybeans, although according to the weekly report of export sales for the week only amounted to 311 thousand tons.

in February, China reduced the export of soybeans compared to the previous year by 18% to 4.46 million tonnes, which was the lowest level since Feb 2015 when it was imported only at 4.26 million tons, the Country expects to market for Brazilian soy, which is 2-3 $/t cheaper than the American and has a higher protein content.

Prices are unable to support an increase in the forecast of soybean processing and production of soy oil in the USA on the background of increased demand from the biodiesel industry, which will lead to a substantial reduction in ending stocks in the United States.

in the Near future traders will be watching the final performance of soybean production in Argentina and Brazil. Now the Ministry of economy of Argentina estimates the crop at 54 million tons, the exchange in Rosario – 52 million tons, experts exchange Buenos Aires to 53 million tonnes, while in March the USDA forecast is 55 million tons.