The slowdown in production support prices for soybeans

2020-10-28 12:02:58
Machine translation
The slowdown in production support prices for soybeans

the Price of soybeans, on the exchanges and physical markets grow due to the high demand from China and concerns the sowing of soybean in South America, where there is a precipitation deficit, with the result that the experts have lowered the forecast yield.


In its October report, the experts of Oil World lowered compared to the September forecast the global soybean crop in 2020/21 MG 2.9 million tons to 366,7 million tonnes, which is by 28.4 million tons higher than the figure recorded 2019/20 Mr – 338,3 million t. Experts USDA in October gave 368,5 million tons.


in Particular, due to adverse weather USA forecast soybean production is reduced by 1.3 million tonnes to 116,1 million tons, Brazil and Argentina by 1 million tonnes to 131.5 million tonnes and 50.5 million tonnes respectively, while for Canada increased 0.2 million tons to 6.1 million tons, China – 0.2 million tons to 17.9 million tons.


the Forecast of world soybean processing in 2020/21 MG increased compared to September 319,8 to 320,8 million tons, 11.7 million tons will exceed last year's figure. At the same time the forecast of ending stocks was lowered from 104,6 up to 99.1 million tons, while in October, USDA estimated them at 88.7 million tons.


the November soybean futures in Chicago after updating last week's 2.5-year high of 398 $/MT Monday fell to 394,2 $/t in the absence of Chinese buying and a quick harvest in the United States.


October 15, USDA did not have recorded export sales to China, which reinforces the concerns of the traders in anticipation of further growth of prices for soybeans have increased the number of long contracts.


the Price of soybeans for delivery to China rose to ranges from 520 to 540 $/t CFR, which decreased the refining margin was to low and amid rising stocks led to a drop in demand.


According Agricensus in the physical market, prices for U.S. soybeans rose to 455 $/MT FOB US Gulf, Argentina and Brazilian to 480-500 $/t FOB for shipments in November – December.


After the world market exporters in Ukraine raised in the port procurement prices for soybeans with GMOs to 470-475 $/t or 15600-16000 UAH/t and soybeans without GMO to 475-485 $/t or 16000-16200 UAH/t. Processors yet offer GMO soy is not more 15500-15600 UAH/t, and soybeans without GMO 15700-16000 UAH/t with delivery to the plant.


the Increase in global supply against the backdrop of high prices led to reduced demand from buyers in the near future will adjust purchases depending on the data on planting in Brazil and Argentina.

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