Source: Oleoscope (Russia)
Soybean prices fell to a fresh three-year low as rainfall forecasts in drier areas of the U.S. Midwest helped ease concerns about possible crop losses, Bloomberg BNN reported.
Futures for November delivery of oilseeds used for everything from chicken feed to truck fuel lost 2.9 percent in Chicago, falling to $10.18 a bushel, the lowest since October 2020.
Forecasts for rain in the Midwest over the next two weeks – after some drought in the western Farm Belt – suggest the US is on track for a bumper crop. Meanwhile, export sales of incoming produce are slower than usual, fueling concerns about demand.
In China, the world’s largest buyer, soybean meal stocks rose to their highest level in five years due to weak demand for animal feed. Profit margins on soybean processing have fallen below zero, meaning processors in the country have less incentive to secure additional supplies of the oilseed.
It was previously reported that soybean shipments from the United States to China fell 23% year-over-year, from 30.5 million metric tons to 23.4 million metric tons. Agricultural exports fell to USD 13.7 billion in May, down almost 2% year-on-year, resulting in a 5% decline in total exports in FY 2024 compared to 2023.