[AUGUST 22] This week's World Grain Market News

GrainScanner
22 Aug 2024


Soybean Prices Continue to Decline

Is Further Volatility Expected?




Weekly Grain Update | August 4th Week 2024

Here's a brief overview of this week's global grain issues.



1.  Continuous Decline in Soybean Futures Prices

Soybean futures prices have continued their downward trend, driven by sluggish demand and an increase in global supply. This pressure on prices is particularly evident as the U.S. soybean crop outlook remains favorable. The market is expected to face ongoing fluctuations due to oversupply and weak demand, signaling the potential for further price changes.

๐Ÿ”— Read more > https://www.nasdaq.com/articles/soybean-losses-extend-friday

๐Ÿ’ฌ When will soybean prices hit their lowest point?



2. Ukraine's Record Soybean Harvest Expected for 2024

Ukraine is projected to achieve a record-breaking soybean harvest in 2024, with an estimated 5.7 million tons. This marks the largest soybean yield in Ukrainian history, significantly up from last year's 4.9 million tons. Despite the ongoing conflict, Ukraine has maintained its agricultural production, solidifying its position as a major soybean exporter.

๐Ÿ”— Read more > https://www.hellenicshippingnews.com/ukraine-2024-soybean-harvest-forecast-at-a-record-5-7-mln-t-says-asap-agri/

๐Ÿ’ฌ Despite the War, Ukraine's Soybean Bumper Crop Continues!



3. Ukraine's Corn Harvest Expected to Decline Due to Drought

While Ukraine is seeing record soybean production, its corn harvest is expected to decrease due to drought conditions. This contrast highlights the varying impacts of weather on different crops within the same region.

๐Ÿ”— Read more > https://www.hellenicshippingnews.com/ukraine-2024-soybean-harvest-forecast-at-a-record-5-7-mln-t-says-asap-agri/

๐Ÿ’ฌ Will the Corn Raw Material Market Find Stability?




๐Ÿ“ Grainscanner Comments 


Decline in Soybean Futures Prices: Impact of Favorable Crop Conditions and Decreased Demand

Recently, soybean futures prices have been consistently declining, drawing market attention. The main factors contributing to this downward trend are as follows:

โ‘  U.S. soybean production is showing better-than-expected crop conditions, raising concerns about oversupply. Particularly, the mild weather in the Midwest region of the United States is favorable for crop growth, leading to expectations of increased soybean production. This positive crop outlook is putting pressure on the market, and the price decline continues due to the potential oversupply.

โ‘ก Intensified competition in the international market is also contributing to the decline in soybean prices. Major soybean-producing countries like Brazil and Argentina are also reporting good crop conditions, leading to an increase in global supply. As a result, the export competitiveness of U.S. soybeans is weakening, which is putting additional pressure on prices.

โ‘ข The decrease in export demand is directly affecting the price decline. In particular, China's demand for soybeans is slowing down, and global economic uncertainties are negatively impacting the export market. This reduction in demand is constraining U.S. soybean exports and consequently leading to price declines.

In this situation, grain buyers need to closely monitor the volatility of soybean prices and flexibly respond to changing market conditions. As the downward trend in prices is likely to continue for the time being, it is important to establish appropriate strategies to minimize risks.



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