Soybeans: slight upward price impulses
April 22, 2020 at 4:42 PM ,
Der AUDITOR
Soybeans in Chicago were up 2.4% in the afternoon, at USD 8.36 per bushel. US soybean meal rose by 0.8%, while soybean oil in Chicago was up by 1.0 %. The USDA reported export sales of 198,000 metric tonnes of US soybeans to China. A slight recovery in crude oil prices led to rising US soybean prices. US President Donald Trump wants to support the US oil industry with billions in government aid. Trump had instructed his energy and finance minister to work out a plan, according to the Tweet. China's outlook for the pork supply in the second quarter remained less optimistic. China's pork production fell by 29% in the first quarter of 2020 compared to last year. The consequences of African swine fever could reach its peak in September. While many slaughterhouse locations in the USA, following Smithfield Foods, Cargill and JBS, had to close down due to meat consumption losses caused by the Covid-19 pandemic, Tyson Foods resumed its slaughterhouse operations in Columbus Junction in some areas. The plant with 1,400 employees had been shut down for two weeks. Due to many closures, rumors arose that the meat supply had dropped sharply and could lead to shortages, which Canada's government contradicted.
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Soy meal LP (44/7), prices in EUR/mt |
||||
|
FOB |
4/20 |
5/20 |
6-7/20 |
8-10/20 |
|
Rotterdam |
- |
- |
299.00 |
298.00 |
|
Hamburg |
337.00 |
322.00 |
296.00 |
295.00 |
|
Mainz |
359.00 |
336.00 |
309.00 |
307.00 |
|
Straubing |
386.00 |
361.00 |
327.00 |
325.00 |
|
Trade sources |
||||
Weakening demand for pork versus higher soy meal prices
Soy meal in Western Europe grew weakly due to the dollar. Local traders reckoned that soybeans could weaken again because US farmers could increasingly switch from corn to beans. Meanwhile, the harvest is almost complete in Brazil and is progressing well in Argentina, with 38% progress. Not as blatant as in North and South America, the market for slaughter pigs is now also developing downwards in Western Europe, following the sharp slump in the catering sector, the cancellation of many major events due to the Covid-19 pandemic and the fact that in many places no trips can be booked. The good export demand to China last year suffered greatly from the pandemic, and not even enough reefer containers could be provided there to transport frozen pork to China's major cities. This is another reason why large slaughterhouses have lowered prices, which has worsened the profitability of fattening farms and could lead to low stabling levels. At EUR 1.84 per kg carcass weight, the pig price on the ISN stock exchange was still comparatively in the green zone today, if one compares the price crashes in the USA.
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