IGC corrects global soybean harvest 2020 slightly downwards - good supply situation remains The international grain council (IGC) has reduced its current estimate of world soy production slightly downwards to 364 mln t compared to the previous month. The triggers are Brazil with a higher harvest and the USA with a slightly lower expectation of soybean cultivation in 2020. Consumption has also been reduced somewhat and is now at just under 363 million t. The final stocks decrease only slightly at almost 40 million tons . The stocks last for around 40 days. This means that the good supply situation worldwide is maintained for the time being, although it should be borne in mind that two harvests take place each year: in the spring / early summer months in South America and in autumn in North America, each with a strong export orientation. The IGC has increased Brazil's soy production again to a record level of 126.8 million tons.The soybean harvest for Argentina was also increased to 53.5 million t . Brazil becomes approx. Export 78 million tons. Argentina supplies soybean meal on the order of approx. 30 million tons. The US soy cultivation currently being sown is expected to result in a reduced 112.5 million t . However, based on the current status, it can be expected that the US space could be larger. According to an old market rule, more soybeans are sown when the price ratio for soybeans is more than 2.5 times the corn price. Soybeans are currently trading at just over $ 8.5 per bushel, while corn prices are just over $ 3 per bu. China dominates on the consumption side with approx. 109 million tons , of which 92 million tons are imported. The majority of it comes from Brazil. In the United States, the Chinese only buy what is most necessary due to the trade conflict when the goods are running low in South America.The IGC estimates that the second largest importer, EU , will probably only import 14.4 million tons of beans. In addition, there are just under 20 million tons of soybean imports from the EU countries. After a short corona shock, the soy courses have caught up again and are currently tending sideways in view of the long weekend.
