Oilseeds - Oils

Soybeans: growing concern over slaughterhouse closures

May 12, 2020 4:26 PM, Der AUDITOR
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CHICAGO. The US soybean market continued to grow. China continues to buy US soybeans. The WASDE report is eagerly awaited as it provides initial estimates of the new crop. The area sown for the US soybean crop is likely to be expanded by up to 10%, according to retailers. In Germany, the price trend for pork also caused the animal feed sector to get a little out of control. Westfleisch in Coesfeld will remain closed for the time being due to Covid-19.

US soybeans in Chicago grew by 0.4% to just under USD 8.53 per bushel. Soybean meal fell by 0.3% and soybean oil by 0.7%. In the USA, rumors of four shiploads to China were confirmed. On Monday Beijing bought 240,000 metric tonnes of soybeans from the USA. This afternoon, China added to its purchases with 136,000 metric tonnes of US soybeans. The export inspection of 496,000 metric tonnes of US soybeans was in line with trade expectations. According to experts from TFM, Beijing has raised its 2020-2021 import forecast for soybeans by 2 million metric tonnes to 91 million metric tonnes, which was like a price firework in Chicago. In view of the WASDE report, which traditionally provides initial estimates of the new crop in May, US retailers are expecting an expansion of cultivation of up to 10% for the coming US soybean crop, which could result in a US soybean crop of up to 107 million metric tonnes. The Reuters survey of the trade showed that US soybean end-stocks for 2019/2020 of 488 million bushels could exceed the April estimate of 480 million bushels. Analysts also expect a correction of the crop forecasts for Latin America. In Argentina the estimate could be revised downwards by 0.8 to 51.2 million metric tonnes, for Brazil by 1.5 to 123 million metric tonnes. The acreage for the US soybean crop is likely to be expanded by 10%, which could result in a coming US soybean crop of just under 107 million metric tonnes.

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

FOB

5/20

6/20

7/20

8-10/20

Rotterdam

-

304.00

296.00

296.00

Hamburg

306.00

300.00

292.00

290.00

Mainz

320.00

311.00

304.00

304.00

Straubing

342.00

331.00

323.00

323.00

Trade sources

Slaughterhouses in trouble
In Germany, the price trend for pork also caused the animal feed sector to get somewhat out of hand. After Westfleisch had to close the Coesfeld plant because of 205 employees who were infected with the coronavirus, the market came under considerable pressure. In the meantime, all employees are being tested for Covid-19. As pork exports to China have also declined due to cheaper offers from the USA, pork prices have fallen from EUR 1.70 per kg last week to EUR 1.60 per kg. Whether the Covid-19 pandemic will have similar consequences for slaughterhouses in Germany as in the USA is not to be hoped for at present, the trade said.

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