The soybean crop in Argentina could reach 36 million tonnes
BA Airasca the corn exchange in the new weekly report left the forecast soybean production at 36 million tonnes (compared to 57 million tons in 2017) and corn at 32 ml tons (vs 39 mln t in 2017), whereas experts evaluate their USDA 37 and 33 million tonnes respectively.
In Argentina, soybeans are collected with 97% of the area with an average yield of 2.14 t/ha, and corn – from 51.3% of the area with a yield of 6.51 t/ha.
After trade disputes with the United States, China has stepped up purchases of soybeans from South America, particularly from Brazil, which this year may collect 118-119 million tons.
Experts of Oil World believe that in June-December 2018 the supply of Brazilian soybeans to China could rise to 32 million tonnes, which will account for 86% of total imports for the period and 5.7 million tons higher than the figure recorded same period last year. Usually, at the end of summer Brazil reduces the rate of exports, and the United States begin to increase.
Countries in South America in 2018 will be able to export 34.8 million tons of soybeans, which is 9% or 2.7 million tonnes will exceed last year's figure.
as a Result of the possible introduction by China of import duties, prices for U.S. soybeans fell by 17%, which contributes to an increase in soybean exports from the US to Argentina, where processing power will feel the lack of raw materials due to poor harvest. Weekly soybean exports from the U.S. rose by 66.1% to 992 thousand tons, well above last year's level.
After falling earlier in the week to 10-year low, the July soybean futures in Chicago rose to 332$/t, while prices in the spot market has dropped after futures. The build-up of residues of soybean in China in the near future will put pressure on prices in the market.