Prices for soybeans can grow due to China's intent to abolish duties
China's Ministry of Finance has published a list of goods made in the USA, which includes soybeans, pork and beef, which may be revoked import duty, reports Reuters.
starting from 2nd of September to begin the application process for the abolition of import duties, introduced in July 2018 on goods from the U.S. to the tune of $ 50 billion. And from 3 June to 5 July submissions will be accepted at the abolition of the duty on goods on 60 billion $, which was introduced in September 2018
the Abolition of import duties indicates that China does not want to exacerbate the conflict with the United States. The abolition of duties on soy and the intensification of its imports from the United States will become an important factor supporting prices amid uncertainty with the new harvest.
While yesterday's drop in oil prices to a new low 59,57 $/bbl led to the decline in soybeans 3.2% to 318,3 $/ton and for soybean oil is 1.7% up to $600/t In the USA are still discussing the question of acreage under soybean, that can grow because of impossibility in time to plant corn.
Experts IEG Vantage increased the estimate of acreage under soybean in the current season to 85,037 million acres, the average yield – to 51.1 bushels/acre or 3.4 t/ha, gross yield – up to 117 million tons).
However, as of June 3, soybean planted in the US, only 39% of the area, and in major States producing Illinois, Michigan and Ohio only 17-31% of the forecast. In the case of sowing after the optimal timing yield is reduced by 10-20%, so to obtain the expected crops will be possible only under ideal conditions during the entire vegetation period.
Traders expect the June report USDA, which can significantly affect the market, although a sharp decrease in forecast production probably won't.