Prices for soy fall as better weather in South America

After the long weekend trading on exchanges in the United States on Tuesday began with the fall of prices, especially for soya complex, which is under pressure from declines in palm oil and better weather in South America.

a Sharp increase in prices for soybeans, soybean oil and meal reduced the activity of the buyers that decided to wait for supplies of new crop from South America on the background of reduction of stocks in the United States.

In Argentina, the weekend rains, which replenished the water reserves. During the week also will be rain.

In Brazil, the rainfall is sufficient for normal development of crops. And in some States have already started harvesting soybeans.

the March soybean futures on the stock exchange in Chicago yesterday fell 2% to 501,7 $/ton, soybean meal, 2.6% to 491, 6 $/t, for soybean oil - 1.3% up to 909 $/t since last month, speculators have raised prices by 10-14% and the market is now heavily overbought.

Prices supports the news of the purchase by Chinese companies of 132 thousand tons of new crop soybeans and soybean exports from the United States, who last week increased by 11% to 2.06 million tonnes, and just season reached 43 million tonnes from the USDA projected 65 million tons.

the Experts of Oil World predicts that in 2020/21 MG global soybean exports will increase compared to the previous season with up to 169,3 of 166.7 million tonnes, in particular with the United States – just 36% from 45.6 to 62.1 million tons, Canada – 1 million tons to 4.5 million tons, Paraguay – 0.7 million tons to 6.4 million tons at the same time Brazil will reduce exports from 92.5 to 81.6 million tons, Argentina – from 11.4 to 7.7 million tonnes, Ukraine, from 2.6 to 1.9 million tons, Russia with 1.1 to 0.9 million tons.

it is Expected that China will continue to buy soybeans will increase its imports in 2020/21 MG in comparison with the previous season of 98.4 to 101 million tons.