Oilseeds - Oils

Soybeans: export euphoria subsides

June 15, 2020 4:20 PM, Der AUDITOR
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CHICAGO. In the USA, the trade was able to achieve quite acceptable export results to China in the last two weeks. Beijing also added to its exports of US soy imports today. However, Brazil's real is already showing signs of weakness again, which could put a strain on the competitiveness of US soybeans. Brazil's economy is suffering from extremely high new Covid-19 infections. The resurgence of new coronavirus cases in China and a weaker recovery of Chinese industrial production in May have again worsened the export prospects for soybeans.

US soybeans in Chicago in the afternoon were marginally firmer than last Friday at USD 8.67 per bushel. Soybean meal fell by 0.9%, soybean oil by 1.7%. On Friday afternoon, the USDA announced the export of 120,000 metric tonnes of soybeans to an unknown destination. On Thursday, the US exported 720,000 metric tonnes to China, 657,000 metric tonnes of which already concerned the new crop. A positive surprise was the weekly export of 2.2 million metric tonnes of soybeans, a good 1 million metric tonnes for the old crop and 1.2 million metric tonnes for the new crop, the highest weekly value since February 2019. China accounted for around 854,000 metric tonnes of this. Beijing finally made up ground, with the USDA reporting US soybean exports of 390,000 metric tonnes for delivery to China in 2020/2021. The focus was also on the upcoming NOPA report on US soybean processing, which was expected by the trade at 173.07 million bushels over last month's 171.75 million bushels. US soybean oil stocks are expected to decline to 2.025 billion pounds, compared to 2.068 billion pounds last year. In the US, soybean cultivation was also the focus of attention, with trade predicting 95% growth, up from 86% last week.

Soy meal LP (44/7), prices in EUR/mt

FOB

6/20

7/20

8/20

9-10/20

Rotterdam

-

292.00

295.00

295.00

Hamburg

290.00

288.00

286.00

288.00

Mainz

301.00

300.00

300.00

302.00

Straubing

319.00

318.00

318.00

320.00

Trade sources

Brazilian real shows more weakness again 
In the USA, brokers reported that tropical storm Cristobal had provided good soil moisture in the states of Missouri, Iowa and Wisconsin, which Chicago penalised with slight price losses for soybeans. The market for US pork developed positively, with slaughterings increasing by 0.6% over last week and exceeding last year by 0.7%, according to experts at Allendale Inc. However, soybeans were also affected by the weakening Brazilian real during the course of trading, which impaired the competitiveness of US products. In addition, the resurgence of new coronavirus cases in China, with 57 confirmed cases in Beijing, caused a stir after lockdown measures were recently eased considerably. In Western Europe, soybean meal fell slightly. The tendency has been rather sideways lately.

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