The forecast of world soybean production and consumption in China have increased in the new USDA report

New balance USDA soybean analysts were surprised more than expected, the increase in the forecast of soybean production in the U.S. and the world, as well as estimates of consumption of soy in the United States and China.

However, soybean futures on the stock exchange in Chicago yesterday rose 2% to 326,6 $/t in the storm that passed by individual States and probably damaged the crops.

In comparison with the previous report from the global initial stocks of soybeans of the season 2020/21 reduced from 4.2 million tonnes to 95,85 mln t, in particular for Brazil by 3.7 million tonnes to 19.1 million tonnes, for which the forecast of exports in 2019/20 Mr raised from 89 to 93.5 million tons.

the Forecast of world soybean production increased by 7.88 million tonnes to 370,4 mln tonnes, which significantly exceeds last year's 337,14 million tons, primarily due to the US, which is the harvest increased from 112,54 to 120,42 million tonnes, while analysts had forecast it at 115-116,3 million tons, and in 2019 he were 96.7 million tons.

the global consumption of soybeans has increased by 4.3 million tonnes to 367,9 million tonnes, in particular to China 3 million tonnes to 116,4 million tons and the United States by 0.68 million tonnes до63,14 million tons and the forecast of world trade increased by 3.91 million tonnes to 165,49 mln t, in particular its assessment of exports for the United States by 2 million tons to 57.8 million tons compared with 45 million tons of season 2019/20, that is possible only if the expected increase of imports by China from 96 to 99 million tons.

the Increase in production will be offset by increasing consumption and decreasing of initial inventory, so the world ending stocks will remain at last year's level 95,36 million tons.

soybean Market is awaiting the outcome of negotiations between the US and China, will be held on Thursday. A continuation of China policy of low-key purchases of American agricultural products will increase the tension in relations between the two countries. China is now trying to reduce the popularity of the trump among U.S. farmers, as interested in the re-election of President Biden, who promised to stop the trade war and to abolish the export duty on Chinese goods.