The worsening situation in Ukraine caused prices on the international commodities markets to rise at the beginning of this week. The conflict is fuelling geopolitical tensions in the world. Soybean prices reacted with a slight price increase.
The price index of the International Grains Council (IGC) put the soybean price index at 295 points on Monday, October 10. That is 1 point higher than the previous trading day. Compared to a year earlier, it is about 10% higher. The soy price index is a measure of soy prices worldwide.
In general, soybean prices are under pressure as global harvest prospects are favourable. In the 2022-23 season, the IGC expects a record harvest of 387 million tons of soybeans, partly due to favourable planting conditions in Brazil. Later in the season, the weather phenomenon La Niña will determine the weather for a third year.
Market bureau StoneX currently assumes a Brazilian record harvest of 154 million tons of soybeans for next season. In comparison to last season, which was 124 million tons. South American exports are therefore estimated to be higher for the coming season.
The United States expects a larger stock as of September 1. A lot of soy has been shipped from Argentina to China last month. Partly because of this, the Chinese demand for US soy is less. But the buying interest from China did pick up for the American market at the beginning of this week. Chinese imports are expected to be revised downwards in the upcoming Wasde report from the US Department of Agriculture.