The reduction in the consumption of soybeans in China puts pressure on prices

on Monday, Chicago soybean futures fell 1.8%, and oil – by 1.6% on news developed by the Chinese manufacturers ' Association of new feed standards feed with a reduced protein level that will reduce soybean imports to 14 million tonnes.

manufacturers Association of feed of the PRC on 26 October approved the new standards with which the level of protein in feed for pigs is reduced by 1.5% and chickens 1%. This will reduce annual imports of soybeans at 13% or 14 million tons, and reduce the consumption of soybean meal and import of 11 million tons to 71 million tons.

the Brazilian oilseed processors Association (ABIOVE) on the background of strengthening demand for soybeans from China in the fourth quarter increased its forecast of soybean exports in the current marketing year to 77 million tons In 2018, Brazil has exported 73 million tons of soybean. In this scenario, China after the introduction of the 25% duty can refuse to import soybeans from the United States.

the U.S. last week increased soybean exports by 7.7% to 1.3 million tonnes, in particular in China shipped 69,2 thousand tons of soybeans in Argentina – 176 thousand tonnes, but this had the price support.

Future trends in the price of soybeans will depend on political factors. After winning the presidential elections in Brazil right candidate, Bolsonaro, which in the election program promised to ban Chinese property investors in Brazilian lands, the fate of trade relations between the two countries remains uncertain.

In Ukraine, the processors reduce purchase prices for soybeans for seasonal growth in demand in the backdrop of almost no demand from exporters. Exporters at the port offer soy 318-325 $/t, and processors of the plant – 10000-10500 UAH/MT for soybeans with high protein content.