Forecast production growth continues to push prices for soybeans
soybean Futures yesterday fell again to 5.6 $/t and dropped to 347,4 $/t Soybean meal lost 3 $/t and is trading at 387,3 $/t
Bearish WASDE became the main factor of pressure on prices.
the Experts at the USDA unexpectedly increased its forecast of soybean production in 2017/18 MG for Brazil by 2 million tons to 119 million tons, while the Brazilian Agency CONAB predicts an increase of production by 1 million tonnes to 118 million tonnes, and Argentina has reduced the crop estimate by 2 million tonnes to 37 million tonnes.
In the 2018/19 season, experts predict, compared with may growth estimate of soybean production by 0.7 million tonnes to 355.2 million tons and a slight increase in the starting and ending balances.
To the United States through capacity of soybean processing volumes forecast ending balances in the current season have reduced, and in the case of settlement of a trade dispute with China and increasing export volumes of residues can be reduced even more.
the price of soybeans continues to push lower prices for palm oil.
Malaysia in may reduced by comparison with April palm oil exports by 16% due to the increase in India's import duties.
This led to a further decline in prices on the Malaysian stock exchange 1% to 2326 Ringgits/t or 582,5 $/t, which is the lowest price in two years.
the Decrease in demand for 5% export duty on malisse palm oil to discourage exports in June-July.