Prices for soybeans are growing despite the absence of a commercial transaction

2019-05-28 12:39:34
Machine translation
Prices for soybeans are growing despite the absence of a commercial transaction

During his visit to Japan President, trump said that despite China's desire to make his country the bargain, the United States is not ready for such a step. In his opinion, business is moving from China to other countries, in particular USA and Japan. While trump said that the American tariffs on Chinese goods may increase significantly. However, the President expressed hope that when the United States and China will sign a "great bargain".


the Lack of progress in trade negotiations between the countries hinder the exports of U.S. soybeans to China, that prices have fallen significantly and may fall below 300 $/t, however, on the background of delayed sowing in the US and the intention of the government to allocate 16 billion dollars to compensate the farmers recovered to 310,6 $/t


China in April increased its imports of soybeans in comparison with March by 11% to 7.64 million tons, primarily due to the reduction of VAT for agricultural products, which entered into force on 1 April. The main supplier of soybeans is Brazil, which increased its exports of soybeans to China from 2.79 million tons in March to 5.79 million tonnes in April.


However, the consumption of soybeans by China continued to decline due to significant loss of pigs caused by ASF.


currently the ASF is distributed on the neighboring country of Vietnam. According to the agriculture Ministry since the beginning of the epidemic in the country killed 5% of the population or 1.7 million pigs. Last week, the loss amounted to 200 thousand heads for two weeks – almost 500 thousand heads. Recall that Vietnam occupies the seventh position in the world by number of pigs and the sixth place on volumes of pork production.


Low global demand for soybeans will put pressure on oilseed prices in the current season.

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