The Chicago Board of Trade serves as the benchmark for soybean prices outside of China. Canadian prices decrease along with board prices when they do. To reflect the increased export demand. Your local basis is actually fairly favorable. This means that although your prices are greater than those found domestically in the US. They nevertheless fluctuate similarly to those found there. Your pricing will decrease if CBOT prices do.
Remember that end customers’ choices are influenced by price elasticity. Users will switch to corn if the price of corn drops by 10%, which reduces the demand for soybeans and puts more pressure on soybean prices.
The price rises if it is in short supply. The cash or spot market functions in this manner. Since prices in the cash markets can fluctuate greatly, both buyers and sellers who want to lessen the risk of price changes might shift that risk to speculators.
It is now more expensive to cultivate soy than it is to harvest and sell it due to the decline in soy bean prices. Similar to the British Empire 100 years ago, China doesn’t have much need for completed goods from other nations, so if you want to claim that China will capitulate, how? China doesn’t require American items from the electronics or home appliance sectors.
Corn and soybean barge bids decline
As Argentine growers upped their soybean supplies, basis bids for soybeans carried by barge to U.S. Gulf export ports weakened on Wednesday due to lower freight costs and slower exporter demand, according to brokers.
Following the implementation of a favorable exchange rate for the export of the cash crop, soybean sales by Argentine farmers nearly doubled on Tuesday compared to the previous day, according to the important Buenos Aires grains market. Corn base bids for CIF Gulf also decreased.
Despite the fact that trade was quiet, spot prices for empty barges on Midwest waterways were down 25 to 50 points from Friday.
CIF soybean barges filled in November were re-bid at the same amount, down 6 cents from Tuesday’s previous bid, trading at 140 cents over Chicago Board of Trade (CBOT) January futures (SF3). December barges were re-bid at 128 cents over, down 17 cents from Tuesday, after trading at 130 cents above futures. The export premium above futures for soybeans shipped in the second half of December remained stable at about 165 cents.
CIF barges filled in November were offered at 125 cents over CBOT December futures (CZ2) for maize, which is a 5 cent decrease from Tuesday’s price. Barges for December corn were offered at 117 cents over futures, which was also a nickel lower. Late December loading corn export premiums were down 2 cents to about 143 cents above December futures.