Shipping to Asia
According to the Illinois Soybean Association (ISA), Asian countries, led by Indonesia are relying on shipping containers to transport the soybeans which they have purchased. This method of transport has increased by over 40% since 2015 to 2.8 million metric tonnes. Soybeans shipped in containers to Asia are also expected to rise by around 18%, therefore making it 3.3 million metric tonnes.
This method of shipping has made it easier for smaller countries to buy U.S soybeans. It minimises their inventory investment as well as other benefits such as quality prevention and shorter delivery times without going through the main shipping channel. This also has benefits for the U.S as it means idle sitting containers can then be used to ship the soybeans, henceforth, freeing up space in their shipping yards.
Price for week 16
Due to Easter holidays, trading ended a day earlier this week. At the start of the week, soybean started trading at 898.6 cents. 2 days later however, it had plummeted to 879.0 cents. By the close of trading this week it ended up at 879.0 cents, 19,6 cents down from the previous week.
Sources:
https://www.ilsoy.org/press-release/asia-shows-increasing-demand-container-shipping-us-soybeans
https://www.cmegroup.com/trading/agricultural/grain-and-oilseed/soybean_quotes_globex.html?optid=320
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