Prices for soybeans are expecting a report by the USDA and CONAB
soybean Market awaits the release of the monthly USDA reports, Brazilian Agency CONAB and MSG in China, which will eliminate the drought in Argentina, the uncertainty with price trends and prospects for soybeans and soybean meal.
Yesterday in Chicago soybeans fell to 394,2 USD/t, soybean meal - up to 429 $/ton, oil – 712 up to $/t
Experts believe that in the new report, USDA forecast soybean stocks in the United States will remain at 530 million bushels, while traders estimate them in the range of 490-590 million bushels. It is expected that the forecast of soybean production in Brazil will increase by 1.9 million tonnes to 113.9 mln t. for Argentina it will be reduced by 5.5 million tons to 48.5 million tons.
Through increased imports of soybeans and to increase its own production of soybean oil in China in 2017/18 MG can reduce the purchase of palm oil. China now buys 60% of global supply of soybean, while demand for soybean meal in the country is increasing annually. In 2017, imports of soybeans have increased compared to year 2016 13.9% to a record high of 95.54 million tonnes, which is very concerned about the Malaysian palm oil producers. In the February forecast, the USDA, in season 2017/18 China will reduce the import of palm oil to 4,881 million tons.
According to the operators of the Malaysian market, the palm oil stocks in China amount to 600 thousand tons. Such a high level against the background of the slow pace of procurement puts pressure on the price of palm oil in Malaysia.