Prices for soybeans remain under pressure of increased production forecasts in Brazil and Argentina

Due to favorable rainfall throughout the season, experts Informa increased its forecast of soybean production in Brazil in 2019/20 MG to a record 128 million tonnes, while the USDA in February was estimated at 125 million tonnes at the same time analysts at INTL FCStone believe that the country will gather to 124.2 million tonnes of soybeans, down 0.2 million tons exceeds the previous estimate.

Forecast soybean production for one of the main regions of growth – the Rio Grande-the lack of precipitation was adjusted to 17.14 million tons that will be offset by increased harvest in the state of Mato Grosso at the level of 34.5 million tonnes, 1 million tonnes more than the previous estimate and 2 million tonnes in the previous year.

Argentina experts INTL FCStone increased the production forecast of soybeans from 53 to 55 million tonnes, while the USDA increased its 1.1 million tonnes to 54.1 million tonnes.

Under the pressure of increasing production forecasts and a slowdown in exports of U.S. soybean futures and soybean oil fell yesterday, and to support them could not even news to extend for a year China's dismissal of processors from import duties on U.S. soybeans and the purchase of 1 million tonnes of Brazilian soybeans.

the May soybean futures fell 1.5% to 329,7 $/ton, and soybean oil – by 1.7% to 643,09 $/t

Export sales of soybeans from the U.S. last week rose from 339 to 345 thousand tons, as sales of 135 thousand tons were cancelled. Until China has sold only 6 thousand Since the beginning of the season export sales of soybeans from the United States made up of 34.07 million tons, so to reach the USDA's projected level remaining 49.67 million tons need to sell 15.6 million tons or 600 thousand tons weekly.

the Actual exports of soybeans rose for the week on 100 thousand t to 695,5 thousand tonnes, of which 132 thousand tons were sent to China, where stocks of soybean oil reached its highest since October 2019. the level of 1.35 million tons due to falling demand because of the epidemic coronavirus.