Enormous Stocks in America Crash Soybean and Meal Prices

This week is one of the most interesting in the winter period at CME due to the WASDE report.

The price of soybean meal and grain has finally ended the week with a price lower by even 12 usd/st for grain and 20 usd/st for meal due to enormous stocks in America, and higher figures than expected in Brazil.

Wheat has also followed the movement of soybean prices; sometimes emotion alone is enough instead of real reasons for price movements in any direction in the market.

>>>Soybean Meal Prices Rise

Many believe that the price of soybeans has risen too much in recent weeks and that the WASDE report only provided a reason for price correction, considering that since the beginning of the year, the price of soybean grain at CME has jumped by more than 25 usd/mt.

American farmers took the opportunity last week and sold large quantities, which further contributed to the price drop that occurred last Friday.

Fierce Battle for Corn Market

Prices of Ukrainian corn have also reached their maximum in the past 2 years with a price of 196 usd/mt FOB. It is expected that Ukraine, Argentina, and the USA will engage in a fierce battle for the corn market, especially in the Middle East and North Africa.

Rain is expected in Argentina, which could finally stop the constant rise in soybean and corn prices. In Peru, IMPARE ships are conducting research that will last until April 6.

>>>Speculators Turn to Gold Again

Last week, another 40,000 mt of fish meal was contracted, and according to MSI Ceres, new contracts have been concluded for delivery in May-June-July.

The IFFO conference is being held in China this year and starts on March 22. Participants do not even believe that many deals will be made as everyone is awaiting the Peruvian quota.

Trade War

The USA has imposed tariffs on aluminum and steel imports, which will result in a decline in the import of these metals. The leaders of Canada, Mexico, South Korea, Brazil, and the EU have protested the most against the tariffs. Subsequently, the American president exempted Canada and Mexico from tariffs, making the European Union the biggest loser.

>>>Trump ‘Softens Bite’ with Tariffs, Stock Prices on American Stock Exchange Jump

The President of the European Commission has fiercely responded with planned countermeasures, and Trump has threatened tariffs on imports of European cars. A new trade war is beginning in which there will be no winners, only losers!