TrendsWide
Contact US
  • Home
  • Trending
  • Health
  • Life Style
  • NBA
  • Reviews
No Result
View All Result
TrendsWide
  • Home
  • Trending
  • Health
  • Life Style
  • NBA
  • Reviews
No Result
View All Result
TrendsWide
No Result
View All Result
Home Economie

Soybean price reaches a 5-year high as China turns to the US for supply

by souhaib
November 19, 2020
in Economie
0
Soybean price reaches a 5-year high as China turns to the US for supply
74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter
ADVERTISEMENT

You might also like

‘momentum is continuing into 2022’

Astra Space stock closed down 20% on Monday: here’s why

Ripple, Dogecoin, Litecoin price forecast for February 2022


Soybean price reached the $1175.2 per bushel mark in November this year, which is its highest price level since January 2016. The rising demand for U.S. soybeans results from China’s growing appetite for the soft commodity. Besides, Brazil has failed to meet the existing demand.

Soybean price reaches a 5-year high as China turns to the US for supply
soybean price

China’s growing appetite for soybeans

China is the largest consumer and importer of soybeans in the world. It imports about 75% of its soybeans. Argentina, Brazil, and the United States are the main source of the soft commodity consumed in this Asian country. As such, events in the three countries have a significant impact on soybean price.


Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

The main use of the produce in the Middle Kingdom is poultry and pig feeds. Over the past two years, China has been on a recovery journey from the swine flu that devastated pig farming in the region in 2018/2019. As it rebuilds its pig herd, U.S. soybean exports to China are at the decade’s highest.

Soybean price reaches a 5-year high as China turns to the US for supply
US soybean exports to China

South America fails to meet China’s increasing appetite for soybeans

The US-China trade war prompted China to turn to Brazil for the supply of soybeans. For example, in September this year, China purchased 1.17 million tonnes of the produce from the U.S. The figure represents a 32.4% decline from last year. During the same period, the country’s soybean imports from Brazil rose by 51.4%.

Notably, Brazil is not in a position to satisfy China’s increasing appetite for soybeans. The incapacity is largely due to the harsh weather conditions experienced in the country. As the planting season begins, farmers have been experiencing La Nina; which is characterized by high temperatures and rains that are below average.

Argentina, which is also a major exporter of soybeans, has also recorded a decline in production. According to the November WASDE report, reduced soybean yields in Argentina and other foreign countries have caused oilseed production to reduce by 5.6 million tonnes to 473.3 million tonnes. In addition to the harsh weather conditions in South America, economic uncertainty in Argentina has lessened the expansion of the area under soybean farming.

China Turns to the US for soybeans

The shortage of soybean supply in South America has prompted China to turn to the U.S., which is one of the largest exporters of soybeans to China, for the produce. Besides, the Phase 1 trade deal has contributed to China’s demand of the U.S. soybeans. To fulfil its side of the deal, China needs to purchase over 43 million tonnes of US soybeans in 2020. Notably, it is yet to meet these numbers.

At the same time, USDA has indicated a decline in production in major soybean-producing areas within the U.S. Low yields have been recorded in Iowa, Illinois, Nebraska, Indiana, and Ohio. Subsequently, the forecast for soybean ending stocks is a reduction of 100 million from last month to 190 million bushels. Based on these factors, soybean price is bound to continue rising; which is a good opportunity if you are looking to invest in commodities.  



Source link

Share this:

  • Twitter
  • Facebook
  • More
  • Pinterest
  • Telegram
  • Email
Share30Tweet19
Previous Post

Newcastle confirm legal action against the Premier League after hold up of failed takeover bid

Next Post

Cyberpunk 2077: The Final Preview

souhaib

Recommended For You

‘momentum is continuing into 2022’

by souhaib
February 7, 2022
0
‘momentum is continuing into 2022’

Shares of Chegg Inc (NYSE: CHGG) are up 10% in extended trading on Monday after the student services company said it performed better-than-expected in Q4, despite COVID-19 uncertainty....

Read more

Astra Space stock closed down 20% on Monday: here’s why

by souhaib
February 7, 2022
0
Astra Space stock closed down 20% on Monday: here’s why

Read more

Ripple, Dogecoin, Litecoin price forecast for February 2022

by souhaib
February 7, 2022
0
Ripple, Dogecoin, Litecoin price forecast for February 2022

The cryptocurrency market is advancing this Monday, and this situation also supports the price of Ripple XRP/USD, Dogecoin DOGE/USD, and Litecoin LTC/USD. Bitcoin is trading above the $44,000...

Read more

Analyst: ‘Apple would be forced into it if Amazon goes after Peloton’

by souhaib
February 7, 2022
0
Analyst: ‘Apple would be forced into it if Amazon goes after Peloton’

Read more

Should I buy Uber shares in February 2022?

by souhaib
February 7, 2022
0
Should I buy Uber shares in February 2022?

Uber Technologies, Inc. (NYSE: UBER) will announce fourth-quarter earnings results this Wednesday, February 09, after the market closes. Uber shares have weakened more than 10% since the beginning...

Read more
Next Post
Cyberpunk 2077: The Final Preview

Cyberpunk 2077: The Final Preview

No Result
View All Result

Recent Posts

  • General Law of Mobility and Road Safety calls for order, but must avoid excesses
  • Smilz CBD Gummies Assessments (2022 Update) – Browse This Smilz Complete Spectrum CBD Gummies Critique Just before You Acquire!
  • China Crisis Wipes Out $90 Billion of Developer Sector Value
  • Brainwave Entrainment | Healing Music CD and MP3 Download Reviews 2022
  • Wrestling at Punto México, AAA’s tourism project

Browse by Category

  • Australia
  • Automotive
  • Business
  • Celebrity
  • Cryptocurrency
  • Deals
  • Economie
  • Education
  • Euro
  • Forex
  • Gaming
  • Health
  • Life Style
  • NBA
  • News
  • Reviews
  • Sports
  • Switzerland
  • Trending
  • U.S.
  • Uncategorized

Categories

  • Australia
  • Automotive
  • Business
  • Celebrity
  • Cryptocurrency
  • Deals
  • Economie
  • Education
  • Euro
  • Forex
  • Gaming
  • Health
  • Life Style
  • NBA
  • News
  • Reviews
  • Sports
  • Switzerland
  • Trending
  • U.S.
  • Uncategorized

Pages

  • Contact US
  • Newsletter
  • Privacy Policy
  • Terms & Conditions

© 2021 - TrendsWide

No Result
View All Result
  • Home
  • Contact US
  • Privacy Policy
  • Trending
  • U.S.
  • Economie
  • Deals
  • Reviews
  • Cryptocurrency
  • Health
  • Life Style
  • NBA

© 2021 - TrendsWide