CBOT soybean futures kept falling last week

13.07.2018

During June 29-July 05, CBOT soybean futures kept falling (-2.7%), reports UkrAgroConsult. Expectations of the official entry into force of the US import duties on Chinese goods and China's retaliatory measures remained the main bearish factors.

In addition, the potential for soybean production in the USA remained high, despite the deterioration of soybean conditions over the week. As expected by market participants, increased temperature conditions in the Midwest, as well as downpours in some regions, had a negative impact on soybean. By July 01, the share of soybean in good and excellent conditions had dropped to 71% (73% the previous week). On the reporting date last year, it reached 64%.

At the same time, market participants kept raising soybean productivity estimates. Over the period under review, the spread between Brazilian and US soybean export prices fluctuated already at USD 60/MT, given the growing demand for Brazilian supply from China.

Brazil continues to struggle with logistic problems in the country, which complicates export shipments. According to the country’s Ministry of Agriculture, in June soybean exports fell to 10.4 MMT from 12.4 MMT in May (9.2 MMT in June 2017). ANEC Association reported that with high export demand, in the 2018/19 season, local crushers will have to import about 0.5-1 MMT of soybean from the USA. Argentina completed soybean harvesting, which is estimated at the lowest level over the past nine seasons (36 MMT).

soybean

Check up prices and enjoy free online charts on UkrAgroConsult’s website. Daily updated commodity exchange prices (CBOT, ASX, BCE, MATIF, WCE, LIFFE) and cash market quotations for wheat, corn, barley, soybean, sunflower and other agricultural commodities in Ukraine, Black Sea region and world are available in section "Prices and Futures".

 

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