Oilseeds quotations underpinned by set of factors, US soybean left outside
Oilseed crops quotations on the majority of commodity exchanges are improving following oil, Zernotorg.ua writes.
"The US soybean was the only exception, but this is not surprising given the further aggravation of relations with China and its reorientation towards importing this oilseed crop from Brazil," the report reads.
According to analysts, a number of factors influence the oilseed crops market, including:
- oil price dynamics;
- continued conflict between the US and China, including their allies. The Chinese government has blocked the supply of Australian barley on the pretext of imposing anti-dumping duties;
- easing of quarantine measures in major importing countries, which will contribute to the recovery of vegetable oil consumption;
- soybean harvest completion in Latin America and record export rates of this crop. Brazil exported 33.7 mln t of soybeans in January-April of this year, a 36% increase over the same period last year, with China buying 74% of this amount;
- increased soybean acreage in the US amid falling corn prices;
- China's demand for oilseeds and their derived products is recovering. According to the National Bureau of Statistics of China, April imports of vegetable oils amounted to 858 thou. t, 2.6% higher from April 2019. The growth was driven by increased imports of soybean, sunflower and rapeseed oil.
It is noted that oilseed crops in Ukraine during May had mixed dynamics.
"Hryvnia and US dollar prices for rapeseed and sunflower continued rising amid high export rates of both oilseed crops and their derived products — oil and meal. In particular, the forecast for sunflower oil exports in the current season is set at 6.3-6.4 mln t (+3-5% YoY), and sunflower meal exports for September-April 2019/20 amounted to 36 mln t, of which 36.5% was exported to China," experts say.
In the period of Jan-Apr 2020, soybeans export from Ukraine stood at 733.51 thou. t for the amount of USD 255.59 mln.