Oilseeds - Oils

Soybeans: US exports benefit from weak US dollar

June 4, 2020 4:16 PM, Der AUDITOR
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CHICAGO. The US soybean market continued yesterday's price increase. US soybeans are cheaper than South American origins. China continued its shopping spree in the USA as well. Now it remains to be seen how the Hong Kong conflict between the US and China will affect Beijing's continued soybean demand in the US. Western European importers continue to benefit from the higher euro exchange rate.

US soybeans were trending higher in Chicago in the afternoon at USD 8.59 per bushel, a rise of 0.5% from yesterday. Soybean meal was up 1.0% and soybean oil was down 1.4%. In the US, the weakness of thedollar pushed export expectations for soybeans up to 1.55 million metric tonnes. In the afternoon, the USDA confirmed weekly exports at 495,200 metric tonnes for the old and 483,000 metric tonnes for the new season. Of these, 201,000 metric tonnes of the old and 264,000 metric tonnes of the new season of US soybeans went to China. The US currency fell against the Brazilian real to its lowest level since 27 March, which boosted US exports. Yesterday it became known that China had ordered three to five more shipments of soybeans in the USA, which drove up prices. The Wall Street Journal wrote that China cancelled 23 soybean contracts, but that earlier orders are still on hold and that Beijing plans to stop buying more US soybeans. US brokers were relaxed about this because US soybeans were cheaper than Brazilian origins. The trade was sceptical about the domestic consumption in the US, because the demand for animal feed is likely to lag behind for the time being due to the weaker purchasing power of the US population. In the USA, more than 29 million people were out of work at the beginning of June. This weighs on the demand for meat.

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

FOB

6/20

7/20

8/20

9-10/20

Rotterdam

-

291.00

289.00

292.00

Hamburg

291.00

288.00

285.00

286.00

Mainz

299.00

298.00

296.00

299.00

Straubing

319.00

317.00

314.00

314.00

Trade sources

Brazil's soybean supply pressure could ease 
The trade expects less supply pressure from Brazil until the coming soybean crop of the USA enters the market, which is expected to exceed last year by 16% at 112 million metric tonnes due to higher cultivation areas and trend yields. Brazil is said to have exported a good 15.5 million metric tonnes of soybeans in May due to the collapse of the real, which would be 55% higher than last year, experts from Brugler Marketing & Management said. According to these, Brazil had exported a total of 45 million metric tonnes of soybeans from January to May, the crop was 124 million metric tonnes, a good 5 million metric tonnes higher than last year. On a different page are the closures of international meat processing plants in Brazil, there were recent Covid-19 outbreaks at JBS Sa in the southern state of Rio Grande do Sul, which is affecting domestic demand for soybeans due to lower livestock additions on farms there.

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