US: China soybean prices set new low amid higher Brazil output and bearish sentiments

Chinese soybean prices have continued its downtrend in the week to March 22, with the basis to CBOT futures hitting a new lowest level since 2018, amid higher crop forecast in Brazil and lower demand coverage for nearby shipments. Platts, part of S&P Global Commodity Insights, assessed CFR China soybean M1 basis down 13 cents/bu at 67 cents/bu over May CBOT on March 22, representing a 16% drop on the day. Brazilian private analyst Agroconsult increased its crop forecast in the country by 2 million mt to a record 155 million mt based on the latest crop tour data. Soybean exports out of Brazilian ports have been strong and could reach 15.39 million mt in March, up from 7.55 million mt in February and 12.16 million mt in March 2022, the Brazilian Grains Exporters Association said. According to market sources, China’s demand coverage for May shipment is at 5.9 million mt with a revised demand of 9 million mt, while June shipment is about 2.5 million mt with an expected demand of 7.5 ...