The price of soybeans remains high despite an increase in supply on the world market

soybean Market is influenced by diverse factors, so soybean futures in Chicago have a high volatility. In the beginning of the month they 335 $/t down to the level of $300/t, and in the past three sessions, recovered to 328 $/t

the Main factor of pressure remains virus Covid-19, which first, reduced demand from China, and now is suspended ports of South America, where soy exported.

After the epidemic is over China will resume the operation of enterprises, making in recent weeks, the demand for soybeans and soybean meal began to grow. In January-February of 2020, in comparison with the same period in 2019, imports of soybeans to China increased by 14.2% from 11.83 to 13.51 million tonnes.

To prevent the spread of Covid-19 in the port cities of Argentina and Brazil imposed a quarantine, which stopped the export of soybeans and led to the devaluation of local currencies. But the governments promise that they will not stop exports, and the President of Brazil Jar Bolsonaro yesterday called on state governors to cancel the quarantine and resume operations.

As of March 19, soybeans in Brazil, assembled with 66% of the area, which is 2% lower than the level of last year. In the major States producing Mato Grosso, Mato Grosso do Sul and paraná soybean harvesting is completed.

AgRural estimated through heat and drought in the main-the soybean producers of Rio Grande do Sul, the country will gather received 124.3 million tons of soybeans that will yield a forecast of February, but significantly higher than last year's 117 million tons.

For the week, Brazil has increased soybean exports by 54% to 2.84 million tonnes, but in General in March, may export 7 million tons.

as a Result of the introduction of quarantine in the ports of Brazil, the price of soybeans rose to 350-355 $/t FOB, in line with the prices of U.S. soybeans of $350/MT FOB US Gulf.

In Ukraine, prices for soybeans maintain high demand from exporters and processors that are in the competition to gradually raise prices. Forecasts arrivals into the world market cheaper and quality of Brazilian soybeans have not yet been realized, so the offer for exporters of GMO soybeans 350-360 $/t in the port and non-GMO-soy 375-380 $/t at the border with the EU or Belarus. Processors last week raised the price of soybeans in 100-200 UAH/t with 10800-11000 UAH/t with delivery to the plant.

the Producers are holding back sales in expectation of further price growth, however, proceeds on the world market of soybeans from South America in the background caused by the quarantines, the demand can during the month lead to the next decrease in quotations.