ICompetition intensifies on the soybean market
the soybean market competition intensifies, and the reason for the growth of prices yet.
soybean Exports from the U.S. to China is growing, despite high competition from Brazil, mostly due to more interesting price American oilseeds.
According to the USDA, weekly export sales of soybeans exceeded the experts ' expectations and amounted to 549 thousand tonnes, which was the second largest compared to the current season and a record level last 2 months. The volume of shipped to China during the week of soybeans exceeded the total sales of the previous 3 weeks.
Now the price of U.S. soybeans for 12 $/t lower than the level of the proposals of Brazilian soybeans in paranaguá port for delivery in September - November.
Experts believe that the growth of demand for U.S. soybeans also contributes to the forecast record production of oilseeds in the country and the high level of global ending stocks, which for the 2016/17 season will be approximately 97 million tons.
it Became known that last week was awarded the contract on delivery to China of 3.8 million tons of soybeans from Nebraska. It was preceded by concluded last month an agreement to supply in the same direction 12.5 million tons of soybeans from Iowa.
According to the forecast Agency Safras&Mercado, in season 2017/18 Brazil will increase soybean exports by 24% to 64.5 million tons And the consumption of soy local processors will grow by 1 million tons to 41 million tons.
Total supply of soybean in Brazil in comparison with the previous season, will increase by 19% to 116.3 million tons, while total consumption including export – by 14% to 108,6 mln t. Ending stocks of soybeans will increase from 2.63 to 7.71 million tons.
Production of soybean meal in season 2017/18 will be approximately of 8.12 million tonnes, and exports of meal will increase by 22% to 1.4 million tons.
In Chicago, the price of U.S. soybeans will remain at 343 $/t, but approaching the time of the new harvest will significantly put pressure on the market.
Ukrainian soybeans yet is trading at 360 $/t for October deliveries to the port, however, due to excess supply of cheap South American soybeans price can be significantly reduced.