Soybean prices remain high

Photo: Canva
Photo: Canva

Soybean prices remain at a high level. The International Grains Council (IGC) soybean price index stood at 341 points on June 6 (January 2000 = 100) around the same level as at the end of May.

Compared to a year earlier, the price index is 15% higher. The soy price index is a measure of soy prices in the world.

Soybean quotes on the Chicago futures market recovered cautiously last week after falling prices on the last trading day in May. In addition to higher short-term quotations, soybean quotations also moved higher for the longer term.

Less demand for soy from China

Exports are running well, which has supported the upward movement in recent days. Still, demand from China has declined in recent weeks. Chinese pig prices are bad, making farmers less inclined to keep more pigs and curbing the consumption of soybean meal. The next monthly Wasde report from the US Department of Agriculture (USDA) will be released at the end of this week, where China’s import forecast may be revised downwards.

US Soy

Soybean sowing is going well in the United States. The American acreage of soybeans was sown for 78% at the beginning of June. This puts it close to the 5-year average (79%). The weather conditions in the United States look favorable in the short term, which will benefit seeding and potentially provide additional acreage.

Rapeseed

For rapeseed, quotes on the Paris futures market fluctuate. The first contract expiring (August) rose on Monday 6 June to €804.50 per tonne. This means that the price is again above the € 800 limit. France has been dealing with severe storms and hail over the weekend, raising concerns about crop conditions. That drove up prices.

Smale
Annet Smale Editor Feed Markets


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