Employees at the Tiplam terminal in Santos, Brazil load soybeans on a cargo ship bound for China on March 13, 2017.

Beijing is in control of global soybean market

China’s demand is dropping as it commits to more U.S. supplies

China is pretty much in control of the global soybean market, and could stay in that position for the rest of 2020. Following the signing of the Phase 1 trade pact between the United States and China, it was widely expected soybean prices on the Chicago Board of Trade (CBOT) would shoot up — especially since the deal requires China to dramatically increase its agricultural purchases from the U.S.



CME February 2020 lean hogs with 20-, 50- and 100-day moving averages. (Barchart)

U.S. livestock: Hogs limit down to contract lows

Chicago | Reuters — U.S. hog futures sank by their daily trading limit to contract lows on Thursday under pressure from hefty supplies and fears about the spreading coronavirus outbreak. Cattle futures also hit multi-month lows. U.S. hog supplies are large after farmers expanded their herds to supply new processing plants. But traders are now


CBOT March 2020 soybeans with 20-, 50- and 100-day mopving averages. (Barchart)

U.S. grains: Soybeans set eight-month low

Chicago | Reuters — U.S. soybean futures fell for an eighth consecutive session on Thursday and hit an eight-month low as the rising toll from the coronavirus outbreak in China added to concerns about Chinese demand for American crops. Wheat also eased and set a three-week low on the Chicago Board of Trade as the



ICE Futures July 2020 canola with 20-, 50- and 100-day moving averages. (Barchart)

ICE weekly outlook: Canola values steady after losses

Weaker loonie supportive for canola

MarketsFarm — Canola prices started the week plagued by reports of the rapidly-spreading coronavirus in China, but managed to shake off some of that resistance. At midweek, nearby ICE Futures canola contracts were between $461 and $470, after falling by over $8 on Monday. Crush margins have maintained strength, which supported canola values. Crush margins

CBOT March 2020 soybeans with 20-, 50- and 100-day moving averages. (Barchart)

CBOT weekly outlook: Soybeans oversold

MarketsFarm — Sharp losses in Chicago Board of Trade soybeans over the past month are looking overdone, according to an analyst who expects the lows may be in for the time being. March soybeans lost roughly 60 U.S. cents per bushel since the beginning of January, with the latest concerns over the coronavirus in China