Free of charge

Soybeans: South American municipalities tighten controls against the will of their governments

March 31, 2020 at 3:47 PM , Der AUDITOR
Play report as audio

CHICAGO. Soybean markets were weaker in the USA and South America, but firm in Western Europe. Efforts are underway between the USA and Russia to jointly support the crashed crude oil market by cutting crude oil output by more than 20% in order to avert the threatened wave of US bankruptcies for shale oil producers. Argentina's and Brazil's municipalities have tightened border controls against the will of their governments because of the Covid-19 pandemic.

The international soybean markets were under pressure. Chicago recorded a decline of 1.5% in US soybeans to USD 8.765 per bushel, US soybean meal fell by 1.3%, and only soybean oil showed weak growth of 0.7%. In the USA, the focus was on the development of the Covid-19 pandemic, quarterly inventories and acreage estimates as well as figures from the export inspection. The number of Covid-19-infected patients in the US rose by 15% overnight to 164,610. Analysts expect the quarterly stocks of soybeans as of 1 March to decline to 2.228 billion bushel. The Bloomberg survey shows soybean acreage of 85 million acres compared to 76.1 million acres last year. Export inspection fell to 414,000 metric tonnes, which was at the lower end of the trade estimate. The USDA reported an export transaction of 285,000 metric tonnes of soybeans to buyers in Mexico with delivery dates in the coming fiscal year. Cumulative soybean exports for the current fiscal year now amount to 31.6 million metric tonnes and are 7.9% higher than last year.

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

FOB

4/20

5/20

6-7/20

8-10/20

Rotterdam

-

350.00

331.00

316.00

Hamburg

-

350.00

323.00

310.00

Mainz

380.00

361.00

333.00

320.00

Straubing

400.00

374.00

354.00

337.00

Trade sources

Export delays in South America
Argentinean shipments of soybean meal and soybeans were again delayed as the government stepped up inspections of incoming cargo ships to ensure that crew members were not introducing the coronavirus. The inspections greatly delayed the few shipments after authorities and cities violated the government decree that export activities should not be interrupted for safety reasons. According to the grain exchange in Buenos Aires, 4.6% of soybeans were recently harvested in Argentina. Commodity deliveries are also slowing down in Brazil, as logistics are being disrupted due to increasing numbers of cases of Covid-19-infected people. According to the Brazilian Ministry of Trade, the country is nevertheless expected to export 9.5 million metric tonnes of soybeans in March, which would be 12% higher than last year. However, in the wake of the corona crisis, shipments are expected to decrease significantly in April, with 76% of the Brazilian soybean crop being harvested, according to AgRural. This corresponds roughly to last year's figure. Soybean meal in Western Europe tended stable to firm.

Categories:

View related articles

Go to the News Overview
Oilseeds
Jul 10, 2025
ASTANA. A recovery in crops and EU tariffs on Russian flaxseed imports have caused Kazakhstan's flaxseed exports to double. Around 74% of exports went to China and Belgium.
Oilseeds
Jul 10, 2025
NEW DELHI/BRASÍLIA. Growers in India were able to start Kharif sowing early. South Korea has published a new sesame seed tender. The crop in Brazil is of impressive quality.
Oilseeds
Jul 9, 2025
SOFIA/KYIV. Rainfall brought some relief to European growing regions after a period of hot, dry weather. This is good news for the sunflower seed crop. The EU imported around 20% less sunflower seeds from third countries in the 2024/2025 season.
Oils
Jul 9, 2025
IZMIR. Turkish market players fear that positive production forecasts on the international olive oil market will put further pressure on prices in the domestic market. According to reports, end-of-season stocks in Turkey are expected to exceed 200,000 mt.