Progress in the negotiations between the US and China raises the price of soybeans
the findings may 17-18 talks will be a significant increase in China import of goods and services produced in the USA and the abandonment of restrictions on the import of agricultural goods of American manufacture.
the Parties have resolved some controversial issues of trade relations, and in addition to a substantial increase in energy exports, agricultural products, industrial goods and services, have agreed on the promotion of investments, creation of equal competitive conditions and improvement of certain legal provisions, in particular patent rights in intellectual property that will strengthen cooperation between the United States and China.
Trading on soybean futures in Chicago on Friday began with the fall caused by the news of the cancellation of contracts for the supply of 1 million tons of soybeans from the United States. But the news of reaching agreement with China on the revitalization of the purchase of agricultural products led to a sharp growth of quotations of soybeans by 1.95% to 374,05 $/ton and soybean meal, 1.3% to 420,2 $/t
Prices also supported the reduction information experts Buenos-Iresco exchange BAGE forecast of soybean production in Argentina by 2 million tonnes to 36 million tonnes, while other analysts predict a decrease in harvest to 34-35 million tonnes.
Due to the crop reduction, Argentina may increase soybean imports from Brazil and the US to 3-5 million tons in order to load processing capacities.
As of may 16, in Argentina soybean is assembled from 12 million hectares, which is 71% of the forecast. Lingering precipitation in regions of soybean production hinder the collection of oil and can degrade the quality of grain.