Problems in the soybean market - soaring feed prices in Hamburg, Germany

Published 2020년 10월 8일

Tridge summary

Soybean meal and rapeseed prices have surged by 25% due to a combination of high demand and adverse weather conditions in South America, particularly droughts in Brazil and Argentina, which are major producers of these crops. The increase in prices is further exacerbated by China's ongoing purchases of soybeans, which have helped reduce prices somewhat over the past two and a half years. The result is that the cost of soy flour and rapeseed at the port of Hamburg has significantly increased. The planting of soybean production areas for the 2020/2021 season in Mato Grosso, Brazil's largest soybean-producing state, has been severely affected by the drought, as only 1.7% of the planned area has been planted. Argentina, the world's largest exporter of soybean meal, is also struggling with high export taxes, which have restricted exports of soybean meal.

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

Original content

The price of soybean meal used as feed increased by 25 percent in a few months, followed by the price of rapeseed at a similar rate. The outlook for next year is no better. Currently, the price of soy flour arriving at the port of Hamburg is just under € 350 per tonne. That was about 70 euros more than in July, the price increase is 25 percent. The bids for the coming weeks and months aren’t much more promising either. The American continent is responsible for the dramatic rise in soybean meal. While China’s continued wholesale purchases have already slashed prices well in two and a half years, this is compounded by this year’s extreme drought in South America, which is exacerbating the upward trend in prices. The main reason for the high price of rapeseed is the negligible European rapeseed harvest and the very high demand for rapeseed. Currently, the port of Hamburg costs € 240 per tonne of rapeseed. That’s € 45 per tonne - or 22 per cent more than buyers had to pay in July. ...

Source: magyarmezogazdasag