Prices for soybeans in Chicago dropped to a new low
on Friday, soybean futures in Chicago updated at least 10 years and dropped to 306,9$/t under pressure from bearish report from the USDA, which was released Thursday.
Experts in the July report increased the forecast of production by 4.24 million tons to 359,49 million tonnes and more have reduced the volume of trade soybeans in 2018/19МГ 5 million tons to 157,3 million tons.
the Increase in production is projected in the United States, Brazil and Argentina, and decrease of sales reduced due to lower forecast of soybean imports in China 8 million tonnes to 95mln tone.
as a result of the introduction of import duties on U.S. soybeans China will decrease the consumption will increase imports of soybeans and other oilseeds and vegetable oils.
Imports of soybeans to China in June rose by 1 million tons compared to the previous month, which is equal to last year, indicating slowing demand from processors.
Traders believe that the price of U.S. soybeans reached the lowest level at which the cost of U.S. soybeans with the payment of 25% of the fee will match the cost of Brazilian soybeans delivered to China. The increase in the volume of soybean processing in the United States and also a good rate of export of old crop in other countries support the prices in the cash market. The cost of U.S. soybeans is estimated at 320-330 $/ t FOB US Gulf, compared with the price of Brazilian soybeans about 400 $/ ton FOB.
Futures for soy oil and meal also fell following the fall in soybean prices to the lowest levels in three years. Futures for soybean oil dropped to the level 606,7$/ton, while futures on soybean meal to the level of 356$/ton.