The price of soybeans is increasing due to increased demand from China

Thanks to strengthening demand from Chinese state corporations to the stock market in the United States began to rise, as exporters increased prices, despite forecasts of lower demand and increasing production in the new season.

Analysts expect that in the may WASDE report, the experts will increase the forecast of soybean production in the US in the new season to 112 million tons compared to 96.8 million tonnes in the current season. If the farmers decide to reduce acreage of corn in favor of soybeans, the production of oilseeds will grow even more.

As at 10 may soybean planted 38% of the planned areas compared to 8% last year and 23% on average for 5 years at that date.

According to the median estimate surveyed by The Wall Street Journal analysts in 2019/20 MG ending stocks of soybeans in the U.S. will grow to 13.6 million tons due to reduced exports. Despite the reduction in forecast soybean production to Brazil to 122,9 124,5 million tons and Argentina with 52 to 51.1 million tonnes in the estimate for ending stocks for them is left unchanged at 100 million tons because of lower demand.

the July soybean futures in the U.S. rose to 313 $/t on the news about the purchase of a state owned Chinese Corporation Sinogrsin the next batch of soy volume of 300 thousand tons, and plans for further procurement of soybeans to replenish state reserves. Cofco Corporation for the month has already acquired nearly 2 million tons of U.S. soybeans. In General, over the last week, the United States exported 496,5 thousand tons of soybeans.

soybean Stocks in China fell to a historically low level after supply constraints during the quarantine and delays of shipments of soybeans from Brazil, where the rains have slowed harvest. In April, China bought 11.2 million tonnes of Brazilian soybeans, but it is only 40-45 days.

delays in shipment of soybeans and corn from Argentina prices on cash markets continue to grow. Prices for soybeans rose by about 3-4 $/t to $340/MT FOB Santos and 338 USD/MT FOB US Gulf.