A cut in demand from China is pushing down soybean prices in Brazil

Soybean prices in Brazil fell sharply at the beginning of January amid increased new crop supplies and reduced export demand, particularly from China. China is reducing soybean purchases in anticipation of further price declines in South America, as soybean stocks increase and pork prices fall. According to CNGOIC (China National Grain and Oil Information Center), soybean stocks in China increased by 8% for the week and amounted to 7 million tons as of January 12, which was 33% higher than in December and 65% higher than last year. . Stocks of soybean meal amounted to 980 thousand tons (-1% for the week, +11% for the month, +100% for the year), and soybean oil - 890 thousand tons (-2%, +5%, +25%). USDA experts predict that in FY 2023/24, Brazil will harvest 157 million tons of soybeans, Argentina - 50 million tons, and Paraguay - 10.3 million tons, that is, together - more than 220.2 million tons, which will exceed 195 million tons by 13% , collected by these countries last year. ...