Prices for soybeans are growing thanks to strong demand

2018-10-09 12:06:15
Machine translation
Prices for soybeans are growing thanks to strong demand

Monday, фֹ'usersi for soybean meal on Talansky commodity exchange in China rose 2.5% to a record 501,37 $/t (3457 yuan/ton) on the background of reduction of stocks from refiners and uncertainty in the import of soybeans from the United States.

 

Normally in this period of increasing supplies of soybeans from the United States, as the oilseed stocks in South America are declining. However, import duty is 25% and the aggravation of the trade war hindered the import of U.S. soybeans.

 

Thanks to strong demand from China, the price of Brazilian soybeans rose to 420 $/MT FOB Brazil, and prize money in comparison with American beans is almost 100 $/t. Prices for soybeans for delivery in China also rose to 450-460 $/t CIF China.

 

SIMConsult Experts believe that soy is a new crop in Brazil will be traded within 367,4-459,3 $/t depending on the escalation of trade dispute between the US and China, the harvest of olives in the USA and weather conditions in South America which in coming months will affect the development of crops.

 

Due to the rise in the price of Brazilian soybean and favorable for the cultivation of soybeans the weather, acreage in Brazil will increase by 3-5%, which will allow to increase production up to 120-123 million tons.

 

Analysts predicted intensification of demand for Ukrainian soybeans in the result of a trade war between the US and China, but the adoption of a law to abolish the reimbursement of traders VAT on exports of soybeans, have reduced the interest of buyers in a given culture.

 

Exporters in the ports offer of 340 $/MT for soybeans with GMOs, and 350-355 $/t for soya without GMO. Processors with delivery to the plant offer 10500-10700 UAH/t, which corresponds to the export price at the port. Manufacturers more profitable to deliver the product to the nearest factory than to drive to the port, especially because the shortage of vehicles nearly paralyzed the transportation of grain to ports.