Prices for soybeans of the new harvest in the US fell to the lowest level since the end of 2020 – 406 $/t

Favorable weather in the spring and June of this year continues to improve the condition of soybean crops in the United States, which increases pressure on the quotes of soybeans of the new harvest, which have already fallen to the lowest level since the end of 2020. Additionally, prices are pressured by analysts’ expectations of higher estimates of stocks and soybean planting areas in the United States in today’s USDA reports.

Yesterday on the Chicago stock exchange, the July soybean futures fell 0.9% to 423,4 $/t (-6.7% for the month), and November – by 0.2% to 405,9 $/t (-9.5%).

According to the average estimate of analysts, published by Barchart, soybean stocks in the United States will amount to 26.18 million tons, which is 4.52 million tons more than last year. At the same time, the planted area will reach 86.753 mln acres, which is 243 thsd acres higher than the USDA’s March forecast.

IGC experts raised the forecast of world soybean production in 2024/25 MY by 1 million tons to 415 million tons, which is 23 million tons higher than in 2023/24 MY. As a result, the estimate of world stocks was increased by 1 to 79 million tons, which is 11 million tons higher than in the current season.

Statistics Canada forecasts that in 2024, the country will plant 5.74 mln acres of soybeans, up 2% from the previous year. At the same time, the canola planting areas will decrease by 0.3% to 22 mln acres compared to the previous year, although previously they were estimated at 21.4 mln acres.

Tags: prices, soybean