South American soybean supply pressure continues to ease, reducing the cost of imported soybeans

Due to favorable weather conditions in the U.S. Midwest for soybean growth, a decline in international crude oil prices, and weak soybean export demand that has weighed on prices, CBOT soybean futures’ benchmark contract fell by 0.2% to a four-month low. The outlook for increased U.S. soybean production, together with the continued release of South American soybean supply pressure, has driven down the cost of imported soybeans. As imported soybean arrivals are currently at their peak, the drop in imported soybean costs—combined with pressure easing on soybean meal inventory buildup—has weakened the support/price-holding incentive for oil mills. Selling pressure in the market has not eased; prices continue to edge lower, but further declines may be limited because the crushing of imported soybeans is gradually entering a loss-making state, and low-priced soybean meal has also driven a partial rebound in demand to provide support. (Feed Industry Information Network)
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