Improved Soybean Production Prospects in South America Put Soya Meal Prices on Downtrend

摘要

The downtrend of US soybean futures in recent weeks has spilled over to soya meal prices, sending them to US-$/ST 310.50 in the December position on Nov 16, down from US-$/ST 328.60 on Oct 13. Declines also occurred in the soya meal export quotations in South America, albeit only moderate. At the moment soya meal prices are still supported by risk premiums built into soybean values for probably lower than expected 2018 soybean crops in Brazil and Argentina. However, if production in South America lives up to current forecasts, there is downside potential both for soybean and soya meal prices.