The USDA report supported the price of soybeans
After the publication of the January report USDA soybean futures in Chicago rebounded from almost five-month low and rose 1.3 percent.
Suddenly for traders experts USDA reduced forecast production and yield of soybean in the U.S. in 2017/18 MG.
Through the reduction of the evaluation of soybean exports by 65 million bushels, the forecast of soybean ending stocks increased by 25 million bushels to 479 million bushels.
Forecast soybean production for Brazil, the USDA experts has increased by 2 million tonnes to 110 million tonnes, whereas for Argentina it decreased by 1 million tonnes to 56 million tonnes, which meets the expectations of the traders. In the near future the price of soybeans will affect weather in South America, particularly in Argentina. An increase in precipitation and improve the condition of the Argentine soybean crops will be deprived of support prices for soybeans in the United States.
Ministry of agriculture of China predicts that in season 2017/18, imports of soybeans will grow by 2.6% to reach 96 million tons, while experts USDA making it at 97 million tons.