Market Intelligence Monthly - July 2020
- Market Information
By Mac Marshall, VP Market Intelligence
As we turn the calendar to August and look out at what is shaping up to be a strong soybean crop, let’s take a look back at July and some of the market dynamics for the soy complex. The most notable trend we saw over the month was continued strength in forward buying of U.S. soybeans by China. In July alone, China purchased more than four million metric tonnes (MMT) of U.S. new crop (MY 20/21) soybeans, bringing total new crop sales to over 13.7 MMT; the highest figure for this time of the year since 2014. We’re also seeing renewal in domestic demand – crush figures maintaining above prior year levels as animal protein production rebounds from COVID-induced reductions in the spring, and soybean oil use as a biodiesel feedstock has strengthened. Now is the time of year when the eyes of the market are squarely on the U.S., in anticipation of both crop development and securing a reliable, high-quality and sustainable source of protein as the U.S. moves into its seasonal window as the world’s premier soybean exporter. For more information on soybean market developments, included here is U.S. Soy’s Market Intelligence Monthly report for July 2020.
2020 08 03_Market Intelligence Monthly_July 2020_AMS draft - FINAL