CBOT soybean price declined 2.2% due to weakening of demand from China for US soybeans


During April 12-19, CBOT soybean prices decreased 2.2%. In the spot market, soybean prices in the USA lost USD 14, reports UkrAgroConsult.

Concerns about the upcoming soybean sowing in the United States decreased slightly on forecasts of improving weather conditions. During the next 7-10 days, meteorologists expected some warming in the producing regions of the USA. Moreover, experts expected an expansion of soybean planted area for the 2018 crop.

CBOT soybean futures were also influenced by the weakening of demand from China for US soybeans. In general, since the beginning of the season, soybean contracting is only 3% lower than last year, compared to 5% expected by the USDA in the end of the season. This factor restrained prices from a more significant reduction, along with the trends in the soybean meal market. The current pace of soybean meal shipment from the USA are the highest over the last three seasons. Export demand promoted the further growth of soybean crushing in the US, which reached another record in March.

At the same time, market operators talked about growing purchases of Brazilian soybeans from China. In Brazil, the soybean harvesting campaign is coming to an end. Around 85% have been gathered, which corresponds to the many-year average. Brazilian analysts Safras & Mercado announced an estimate of the soybean crop in the country at a new record of 119.2 MMT (114.1 MMT – an official estimate in 2017). soybean

Argentinean farmers continued to harvest soybean at a high pace, but around 81% of crops are in poor and very poor condition. Market operators believe that in the current season, Argentina will be able to import at least 2 MMT of soybeans from Paraguay to load capacities for the production of soybean meal, UkrAgroConsult’s analysts note.

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