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

Published 2024년 1월 22일

Tridge summary

Brazil's soybean prices have significantly decreased in early January due to an increase in new crop supplies and a decrease in export demand, particularly from China. This is because China is reducing its soybean purchases in anticipation of further price drops in South America. Despite a decrease in the harvest forecast, prices continue to decline. In Argentina, soybean growing conditions are improving. Additionally, March soybean futures on the Chicago Stock Exchange have dropped to a 2-year low.

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

Original content

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. ...

Source: Graintrade