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Price for soybeans relatively high

The price for soybeans is at a relatively high level.

The soybean price index of the International Grains Council (IGC) stood at 242 points at the beginning of this week (index 100 = January 2000). The IGC index serves as a measure of worldwide soybean prices. The soybean price index at the end of October is more than 30% higher than the previous year and has not been at a comparable price level since August 2014.

Good Chinese demand

China imported 9.8 million tonnes of soy in September, of which 7.25 million tonnes came from Brazil and 1.17 million tonnes came from the United States. However, the availability of Brazilian soy is decreasing and as a result, prices for soy with a short delivery period are rising sharply. China imported 19% more soy in September than a year earlier. This increase can largely be explained by the fact that the Chinese pig population is growing again and more soy is being purchased for animal feed than a year ago.

Futures market
Overview of futures prices for: corn, wheat and soybean

More favourable weather

Concerns in South America are easing somewhat due to rainfall. It was very dry in South America, meaning rainfall was very welcome. However, it remains to be seen whether the precipitation is temporary and the dry summer continues.

This week’s forecast is: stable to rising soy prices.