The USDA sharply reduced forecasts of soybean production in the United States
As a Result of a significant reduction in soybean production in the United States, Canada and Ukraine in new report USDA the forecast of world production of oilseeds in 2019/20 Mr reduced by 8.35 million tonnes to 347,04 million tons.
Rain in the United States prevented the planting of soybeans, therefore, the forecast of sowing areas decreased compared with the June rating of 84.6, up to 80 million acres, and the forecast yield from 49.5 to 48.5 bushels/acre or 3.26 t/ha, resulting in the crop estimate was lowered from the 112,95 to 104.6 million tonnes, down from 123.7 million tonnes in 2018/19 Mr. For Ukraine, the production estimate was lowered from 4.5 to 3.8 million tons.
The Forecast of world consumption of soybeans left at 355 million tons, which will greatly exceed the production. The estimate for ending stocks reduced in 112.6 to 104.5 million tonnes, compared to 113 million tonnes in the previous season.
It is Expected that global soybean exports will increase by 200 thousand tons to 151.3 million tons against 150,2 million tons in 2018/19 Mr. The reduction in U.S. exports will be offset by increased supplies of soy from Brazil, Argentina and Uruguay.
Soybean Futures rose only 0.4% to 336 $/t as traders predicted the decline of production in trading strategies.
Low demand from China even after the statement on the intensification of procurement for the resumption of trade negotiations puts pressure on prices. Yesterday's statement trump that China buys less than promised, goods from the United States, may increase the tension between the two countries.
The Export of soybeans from the U.S. last week fell to 132 kt, which is the minimum of the last 9 weeks. To activate exports to China could soon heat up significantly in price.
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