Since yesterday, CBoT soybean futures prices have firmed up again as there are signs that tensions between the US and Iran in the Middle East are de-escalating. However, high harvest expectations in Brazil are preventing stronger price gains.
Corn and wheat prices on the CBoT may also strengthen again.
The grain and oilseed markets are now focusing on the USDA report on supply and demand in the USA and on the world market, which will be published on Friday at 18:00 our time. This could change the assessment for the US corn crop, as weather conditions in North America were poor during the harvest and some crops were not harvested.
China's demand for soybeans is expected to increase significantly in 2020, as the impact of African swine fever was at its lowest in 2019. An initial agreement on the bilateral trade agreement between Beijing and Washington is also set to be signed next week. In it, China commits to buying more US agricultural commodities.
In Brazil, the next soybean harvest will set a new record, but the South American country will probably give back some of the world market share it has gained if China has to buy more from the US.
Source
HANSA Terminhandel
