The USDA increased the forecast of world soybean production at the expense of China

2019-12-12 12:03:18
Machine translation
The USDA increased the forecast of world soybean production at the expense of China

balance December USDA soybean was almost unchanged compared to the previous, except data for China, the increase in production which will lead to an increase in world ending stocks. The balance for the United States in 2019/20 Mr remained unchanged, while analysts expected an increase of the forecast of exports and a corresponding reduction in the ultimate residues.

 

the Forecast of world soybean production increased by 0.92 million tonnes to 337,48 million tonnes, which is 20.73 million tons lower than in the previous season. This revision is due to the increase in the forecast of soybean production in China by 1 million tonnes to 18.1 million tonnes after the Bureau of statistics of China earlier this month reported an increase in acreage and expected high productivity, allowing you to gather 18.2 million tons of soybeans.

 

remained Unchanged forecasts soybean production for Brazil at 123 million tons and Argentina - 53 mln tonnes, which exceeds the data of local experts who evaluate the yields of 121 and 51 million tonnes respectively.

 

Forecast initial stocks of soybeans has not changed, although the estimate for ending stocks increased by 1 million tonnes and 96.4 million tonnes, while analysts expected a reduction of at least 1 million tonnes.

 

the Forecast of world trade in soybeans decreased by 0.6 million tonnes to 149,15 million tons due to reduced exports from Argentina by 0.6 million tons due to an increase in domestic processing.

 

After the publication of the USDA report soybean futures in Chicago strengthened a little yesterday, however, declined to 333,4 $/t. However, the main factor of pressure is not a report, and the decline in demand from China, which earlier in the week acquired 585 thousand tons of U.S. soybeans within issued quotas for duty-free procurement of 1.3 million tons, but then suspended the purchase.

 

In Ukraine, purchasing prices for soybeans was higher due to the recovery of export prices in the ports to 340-345 $/t. This has intensified the demand from recyclers who raised prices by 100-200 UAH/t to 8600-9000 UAH/t with delivery to the plant. When sales decline, manufacturers increase competition between exporters and processors.

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