Soybean Prices Drop: The Market is Shaken

Significant fluctuations are occurring in the global soybean market. Prices peaked on November 18, reaching 11.6 dollars/bushel, but have now declined to 11.2 dollars/bushel. This drop is directly linked to uncertainties regarding demand from China.

Market analysts emphasize that the increase in volatility in futures trading has significantly heightened the risk perception regarding export expectations. According to data from the US Department of Agriculture, China purchased a total of 1.584 million tons of soybeans from the United States last week, reaching the highest weekly volume since November 2023. However, it is clear that for China to meet its year-end target of 12 million tons, purchases need to accelerate.

Currently, high inventory levels and low crushing margins in China are limiting the demand for processed products. In addition, the price advantage of Brazilian soybeans is another factor negatively affecting China’s demand for US products. This situation is leading to increased competition between the United States and Brazil.

Financial markets create an environment that always requires caution for both investors and farmers following such fluctuations. The decline in soybean prices particularly highlights the need to monitor changes in China’s purchasing strategies. Although high purchase figures may seem attractive, these uncertainties in market dynamics will continue to exert pressure on prices.