Prices for soybeans fell due to the increase in production forecast
a Sharp increase in the report USDA the forecast of soybean production in the United States this season has led to the growth of world production and a fall in the price of soybean futures in Chicago by 5.5% to 313,6 $/t
Experts USDA in the August report has increased the forecast soybean yields in the United States to 51.8 bushels/acre or 3.48 t/ha, which is 3.1 bushels/acre higher than the July estimate and 2.5 bushel/acre yield more than last year. Estimate gross yield of soybeans in the U.S. increased to 124,81 MMT predicted in July 117.3 million t collected in 2017 119,5 million tons Experts believe that the US will not be able to significantly increase exports and processing of soybeans this season, so an increase in production will lead to increase carryover by 5.58 million tonnes to 21.3 million tonnes, which will put additional pressure on prices.
In August the balance of supply and demand experts, the USDA increased compared to the previous month to assess the production, consumption and carryover of oilseeds.
the Forecast of world production of oilseeds increased by 10.5 million tonnes to 603,1 million tons due to increased production of the U.S. soybean, sunflower in the EU and slight decrease of the rapeseed crop in the EU.
World exports of oilseeds in the 2018/19 season will grow by 1.2 million tonnes to 182,5 million tonnes due to the growth in soybean exports from the US and rapeseed from Ukraine.
Prediction processing of oil increased by 1.2 million tonnes to 501,8 mln t due to the increase of the processing volumes of rapeseed in Russia, and sunflower in the EU, Ukraine and Russia on the background of lower forecasts of soybean in China.
a Sharp increase in production will lead to increased carryover of oilseeds by 8.3 million tonnes to 1199,9 million tons, including the increase in soybean stocks in the United States.