The U.S. projection for larger global ending inventories dragged on Chicago soy futures, which continued to decline on Monday despite strong export demand and worries about the weather in South America. The most active soybean contract on the Chicago Board of Trade fell 0.8% to $14.71-1/4 a bushel, while wheat increased 0.8% to $7.40-1/2 and maize nearly held steady at $6.45-1/2.
The U.S. Department of Agriculture (USDA) raised its prediction of the world’s ending inventories of soybeans. Despite increased export demand and dry weather in Argentina, the world’s biggest producer, soy prices fell. The early South American crop, though, may benefit from recent rains.
Argentina’s soybean exports are hampered by growers’ reluctance to sell older crops as they attempt to predict how the fresh harvest will turn out. According to the Buenos Aires Grains Exchange, due to the consequences of the extended drought in the area, Argentina’s predicted area for soybeans in 2022–2023 may need to be reduced. Announced it will accept the transportation of Ukrainian wheat through its country for export from Lithuanian ports without constraints.
After the most recent Russian strike on the area’s energy infrastructure. The Ukrainian port of Odesa was shut down on Sunday. According to Agriculture Minister Mykola Solsky, who also noted that traders in grains were not anticipated to halt exports. With the leaders of Russia and Ukraine on Sunday. As both sides look to make adjustments that will increase their exports.
On Sunday, Ukrainian President Volodymyr Zelenskiy met with the presidents of Turkey and France as well as US President Joe Biden, increasing diplomatic activity surrounding the conflict that Russia initiated and is now in its tenth month.
China’s 2022 soybean production increases
According to dealers, commodity funds were net sellers of wheat, soyoil, and soybean futures on Friday and purchases of maize and soymeal futures contracts on the Chicago Board of Trade. As markets awaited a flurry of rate decisions from the U.S. Federal Reserve, the European Central Bank, and others at the beginning of a busy week, Asian shares declined and the dollar moved higher.
According to official figures released on Monday, China’s soybean crop for 2022 increased by about 24%. While corn and wheat production also saw modest growth. However, due to decreasing area, a severe drought. And high temperatures in southern China that reduced yields. Rice production decreased 2% to 208.5 million tonnes, according to the National Statistics Bureau.
Production of wheat increased 0.6% from the previous year to 137.72 million tonnes. Production of soybeans increased by 23.7% to 20.3 million tonnes as oil seed acreage increased by 21.7%.