The price of soybeans has increased with the support of neighbouring markets of wheat and corn

2020-10-01 12:06:35
Machine translation
The price of soybeans has increased with the support of neighbouring markets of wheat and corn

Valuation of stocks of soybeans on September 1 to the quarterly report, USDA, at 14.2 million tons not surprised the market as traders predicted residues within a 13.3-16.5 million tons, compared with 24.7 million tons in 2019 and 11.9 million tons in 2018.

 

However, soybean futures yesterday rose 4% to 379 $/t after rapid growth in the price of wheat and corn reserves that were 8-10% lower than last year, which was not taken into account by traders in trading strategies.

 

During June-August, consumption and export of soybean from the United States in comparison with the corresponding period last year decreased by 2% to 23.3 million tonnes, although exports and processing of soybeans in this period increased.

 

Futures on soybean oil increased 2.8 percent to 733 $/ton, despite the decline in oil prices and palm oil.

 

Futures on palm oil exchange in Malaysia yesterday, fell another 2.3% to 2714 Ringgits/t or 653 $/t, despite projected export growth in September.

 

In Brazil, the lack of precipitation hinders sowing soybean, warms up prices on the physical markets. As at 28 September in Parana soybeans planted only 3% of the planned areas compared to 10% at that date in 2019

 

According Agricensus, the price of Brazilian soybeans continue to grow and have already reached 450 $/MT FOB compared to 410-415 $/t FOB for soybeans the new crop that will hit the market in January, and a $420/MT FOB on American soy, which is equivalent to 475 $/t in China. It remains to be seen whether China continues to buy U.S. soybeans, which gradually becomes more expensive, will provide the advantage of Brazilian soybeans new crop, 60% of which Brazilian producers have already contracted.

 

In Ukraine, after a slight decline in exporting prices of GM soya has intensified the demand for processors that now offer 13500-14000 UAH/t (400-415 $/t delivered to the plant, equivalent 415-430 $/t taking into account logistics, while the exporting price in Porto is around 400-410 $/t

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