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Soybeans prices rose sharply

Prices for soybeans rose sharply at the end of last week after the last publication of the Wasde report.

In this, the US Department of Agriculture (USDA) adjusted the global stock of soybeans downwards. World production decreases by over 1 million tons to 368.47 million tons of soy. In addition, consumption and exports are increasing due to the greater consumption in China.

Photo: Hans Prinsen
Photo: Hans Prinsen

Due to earnings yields, some crop pressure and rainfall in arid Brazil, soybean quotations recovered on the US futures market early this week. But on Tuesday, October 13, the quotations for soybeans move up again. International demand, mainly from China, remains good and Brazil is still dry despite rain. These are important signals in the market that are sustaining the upward mood.

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

The price index for soybeans of the International Grains Council (IGC) stood at 227 points on 12 October (index 100 = January 2000). This price index is a measure of the price development of soybeans on the world market. The soy price index is almost 25% higher than a year ago.

Rapeseed under pressure

Despite a sharp rise in palm oil prices at the beginning of this week, rapeseed quotations fell. The decrease in fuel consumption as a result of the corona crisis has affected the biodiesel industry. And that puts pressure on rapeseed quotations on international futures markets. The oilseed rape quotation for the first contract expiring (November) on the Paris futures market fell by € 5.75 per tonne on 12 October.

This week's forecast is: Higher soy price.