The start of the collection in Brazil and output in China lower prices for soybeans

soybean Futures in Chicago started the week with a 1.5% drop to 337,3 $/t due to reduced purchases of U.S. soybeans to China in the eve of new year holidays and in connection with the beginning of harvest of soybeans in Brazil.

Quotes do not support any increase in weekly soybean exports from the U.S. by 4% to 1.2 million tons, including to China by 33% to 550,7 thousand tons.

Despite the signed trade agreement and the promise to increase purchases of U.S. soybeans, China continues to buy soybeans in Brazil. Analysts believe that the decline in prices Brazilian sellers in the struggle for the buyer will allow China to get cheap soy.

Good weather in Brazil contributed to the formation of an abundant soybean crop this season, despite a small drought in the first months.

According to AgRural, soybeans in the country gathered 1.8% of the area, whereas at the same date last year, it was threshed to 4.5% of the area. Delay in harvesting due to late sowing, which is to conduct on time was prevented by a drought in the third quarter of last year. Delay harvesting of soybeans can narrow the window of optimal sowing dates of maize. AgRural experts predict that Brazil will harvest a record 123 million tons of soybeans.

Until harvesting began in the state of Mato Grosso, and by the end of the month the pace of work is greatly accelerated, and since February soybean harvesting will begin in the other States.