Soybean price depressed by several factors

The soybean price is now also under pressure because of the good weather forecast for the US growing areas. Previously, China - the main consumer of soybeans - had already devalued its currency, while the US Department of Agriculture (USDA) had unexpectedly revised its prediction for the US crop upwards. On the other hand, less attention is being paid to the fact that the USDA upwardly revised demand in China, the EU and the US, thereby reducing the anticipated global surplus in 2015/16 from 10 million tons the month before to 6 million tons now, notes Commerzbank.

According to Commerzbank, however, Brazil stands to gain more than the US from the increase in global demand due to the fact that the Brazilian currency has depreciated considerably of late.