Brazil’s soybean export forecast has been revised upward, putting pressure on the market

Brazil’s National Grain Exporters Association (ANEC) reported on Tuesday that Brazilian soybean exports in November will reach 4.26 million tonnes, up from the 3.772 million tonnes forecast a week earlier. If this forecast is met, they would be an 82% increase from the 2.339 million tonnes in November last year. In October, Brazilian soybean exports totaled 6.398 million tonnes, up 44.3% from the 4.435 million tonnes in the same period last year, Sunsirs reports.

This indicates a significant increase in global soybean supply, which will lead to lower spot prices. Increased soybean supply could lead to increased crushing volumes, which in turn will increase soybean meal sales, which would also negatively impact spot prices.

Expectations of increased export supply will further increase the risk of a decline in futures contracts. Increased soybean exports could lead to increased soybean oil supply, which would also negatively impact spot prices. Demand remains weak, and the forecast for oversupply will push prices further down.

It was previously reported that China’s purchases of American soybeans appear to have ceased less than two weeks after the US announced a broad trade truce. After a flurry of orders late last month, which marked the first of the season, Chinese imports of American cargoes appear to have slowed, according to traders who requested anonymity to discuss confidential information. They said they were unaware of any new shipments.

Tags: Brazil, soybean, crop forecast