Soybeans: uncertainties in the USA and Chinese supply curb demand

As soybean quotes on the Chicago Board of Trade rose again, reaching $11.32 per bushel on November 13, according to data from CEEMA. The advance was driven by the expectation of a cut in the estimate of the U.S. production and a possible resumption of Chinese purchases. However, analysts warn of the excess stocks in China, which reached 10.3 million tons—a new record—due to the high volume imported from Brazil and Argentina. In October, China bought 9.5 million tons, 6.7 million of which were from Brazil. Despite the bets that Beijing would return to the U.S. market, the price difference remains unfavorable to the American product. The crushing margin in China is low and soybean meal prices have fallen more than 20% since April. With this, even with the production uncertainties in the U.S., there is little expectation of a strong ...