Soybeans: South American municipalities tighten controls against the will of their governments
March 31, 2020 3:47 PM,
Der AUDITOR
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.
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