Forecast soybean production for Argentina was reduced due to moisture deficit

the experts of the Grain exchange of Buenos Aires has lowered the forecast of soybean production in Argentina this season, with 54.5 to 52 million tons because of increased precipitation deficit in the provinces of Cordoba and Santa Fe.

Earlier, the Grain exchange Rosario has lowered the forecast of soybean production is 55 to 51.5 million tons.

In the March WASDE report forecast of soybean production in Argentina increased by 1 million tons to 54 million tons, while other analysts have estimated it at 55 million tons.

Uruguay because of the drought in southern regions may reduce soybean production in 2019/20 MG 8-10% from the previously expected 2.4 to 2.6 million tonnes to 2.2 million tonnes, compared to 2.83 million tons last year.

the slowdown in soybean production in South America did not deter from the fall of the soybean quotation on the stock exchange in Chicago, which fell after the introduction in the US of a state of emergency due to pandemic coronavirus.

the May soybean futures during the session slightly increased, but then fell below the level of the market open to 310,6 $/t

May futures for soybean oil in Chicago on Friday fell 1.3% to 573,8 $/MT, while quotations of palm oil in Malaysia has remained at the level 534 $/t

Victory over coronaviruses in China and the resumption of work of the enterprises will increase the demand for soybeans, which confirms the increased purchasing soybeans from Brazil last week. However, it is unknown, will buy China cheap American soybeans after the introduction of States of emergency.

In Ukraine, export prices and demand for soybeans remains high despite the fall in world prices and the growth of the quality of Brazilian soybeans that will appear on the market since April. Traders need not buy soybeans on the background of the limited number of offers and strong competition with processors that support the purchase price level 10600-10800 UAH/t with delivery to the plant.