Soybean prices are falling under pressure from falling demand, despite the growth of wheat and corn markets

The rapid rise in global food wheat prices keeps feed wheat and corn prices close to record levels, while prices for soybeans and soybean meal, which is the main raw material for feed, remain under pressure from falling demand.

Lower pork prices in China and the United States, as well as increased soybean yields in the United States and Brazil, are increasing pressure on soybean prices.

As of November 21, soybeans in the United States are harvested on 95% of the area, compared with 96% on average over 5 years. Dry weather next week will allow you to complete harvesting without losses, which will further increase the volume of production.

January soybean futures rose вчора 4.04/ton to.468/ton yesterday amid a rapid rise in the price of wheat and corn. However, during the month, soybeans increased in price by only 2.2%, while corn – by 6.5%.

Export inspections of soybeans from the United States during November 12-18 decreased by 40% compared to the previous week to 1.684 million tons, and in general in the season they reached 18.161 million tons, which is 37% lower than last year's pace.  

China, according to the Customs Service, in October reduced soybean imports by 41% compared to October 2020 to 5.11 million tons, in particular from the United States – from 3.4 million tons to 775 thousand tons, and from Brazil – from 4.23 to 3.3 million tons.

According to the agency Agrural, as of November 18, 86% of the planned areas were sown with soybeans in Brazil, which is 5% more than last year, and heavy precipitation continues to improve the condition of crops.

In Ukraine, purchase prices for soybeans are declining, especially on the part of processors, who find it difficult to sell meal and pulp in the domestic and foreign markets. At the same time, the cost of transporting soybeans and meal to the EU and Belarus increased by UAH 1,000/ton compared to the previous season, which limits purchase prices. The 5% decline in the euro exchange rate over the year also lowers export prices for soybean oil and meal.

Prices for non-GMO soybeans from buyers from Poland and Belarus fell to D 650-660/t DAP, while for deliveries to the port increased from 6 620-640 to ср 650/t CPT.