Futures Close Report 19th February 2020

Paraguay harvest of soybeans complete over 50% of the planted area- forecast production possible at circa 10mt +  (last year was 8.5 mt) with good yields been reported so far.  Paraguay is the no4 global exporter of Soybeans.

Chinese demand concerns continue to keep pressure on US soybean futures . Chinese demand is being disrupted by efforts to tackle the spread of the Corona virus.   With the volumes that the US need to export particularly after the signing of phase one trade deal any reduction in market potential is a bearish indicator for US prices.