Prices for soybeans increased by 5.2%

After falling on Monday to a 10-year low 290,6 $/t on Tuesday soybean futures in Chicago rose by 5.2% to 305,5 $/t after the statement of the US government about the financial assistance in the amount of $ 15 billion to farmers who suffered from the suspension of exports of soybeans and corn to China.

More rates supports the delay of sowing because, as of may 12, soybean planted in the U.S. only 9% of the planned areas compared to the average 5-year rate of 29%.

Delay planting of corn and spring wheat will change the structure of sown areas in favor of soybean, the optimal sowing dates which continue until 1 June. Analysts IEG Vantage (Informa) increased the estimate of the areas of sowing of soybean in the United States to 86.4 million acres, 1.8 million acres to exceed the may forecast USDA.

soybean Exports for the week decreased by 15% to 513,8 thousand tons, which is 26,5% less than the corresponding period last year.

In Ukraine, the price of soybeans declined after world quotations. Exporters of lowered purchase prices in port before 300-305 $/t, and processors with delivery to the plant – to 9100-9400 UAH/t

Large carryover stocks of soybeans and low margin production will sharply reduce acreage under oilseeds in Ukraine in the new season. As of may 13, domestic farmers sowed only 810 thousand hectares of soybeans or 44% of the planned compared with 1.3 million hectares on this date last year.

Next week, the powerful precipitation in the Central and Western regions will continue to restrain the spring sowing.