Global markets: Oilseeds market signals to sell the soybean stocks

Published 2022년 3월 11일

Tridge summary

Soybean prices have surged due to a decrease in South American production and uncertainty in Black Sea region exports, with the May contract on the Chicago Board of Trade rising 38% since December. This has resulted in wider premiums for old-crop soybeans in the U.S., encouraging selling and discouraging near-term purchases. The conflict in Ukraine has further complicated global oilseed and product exports, leading to significant increases in sunflowerseed oil and meal prices in Argentina. The tightening of global vegetable oil markets, already strained by drought in Canada, South America, and Indonesia, is expected to continue impacting prices and challenging countries that rely on imported vegetable oils.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

With a decline in South America soybean production and uncertainty regarding export prospects for sunflower products out of the Black Sea region, soybean prices have risen dramatically in recent months. The May contract on the Chicago Board of Trade (CBOT) has risen 38 percent since early December, or nearly $4.70/bushel, to $17.07 on March 8. The November contract for new-crop soybeans has risen at a more modest pace (21 percent), adding nearly $2.60/bushel to the contract price since early December. This has led to a widening premium for old-crop soybeans versus new-crop in the United States. Premiums that were near 2 percent in November 2021 are currently 15 percent in early March. The result is higher prices and widening premiums which encourage selling now versus holding stocks into the 2022 U.S. harvest. However, it also discourages near-term purchases by buyers that can afford to wait until later in the year. This is observed in U.S. Export Sales data which shows a faster ...

Source: Agfax