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Expert: International Soybean Trading Abandons The US Dollar, China Price Is About To Become A Global Standard!

Many industry experts predict that global soybeans will be oversupply in 2019. This oversupply will change the global soybean pricing system, that is, the international soybean trade abandons the US dollar. The "China price" has also emerged from the trend and will soon become the benchmark price for the global soybean sales region.

International soybean prices will rise, and Brazil and Argentina will continue to increase production next year!

With the shift in China's purchasing direction, Brazil and Argentina have also become important sources of growth in the world's soybean supply. At the meeting, Brazilian agricultural consulting company André De Bastiani said that Brazil's soybeans have achieved a good harvest for eight consecutive crop seasons, which has made Brazilian producers profitable. It is reported that due to continuous improvement in soybean yields, rising international soybean prices and exchange rate changes, Brazilian soybeans can achieve an income of about 200 US dollars per mu.

Soybean producers' lucrative next step is to expand production or introduce new agricultural equipment and technologies, but whatever action will continue to increase global soybean production. Bastiani said that next year Brazil's soybean production will reach a record high of 120 million tons, and Argentina's soybean production will rebound to 54 million tons, which will lead to global soybean production of 366 million tons in 2019, while consumption expectations With only 349 million tons, oversupply will cause soybean prices to continue to be under pressure.

The rapid increase in production in South American countries is constantly challenging the US's leading position in supply. After all, after the loss of the Chinese market, the US soybean stocks have increased rapidly, and this year's US soybean production is expected to hit a record high, which makes the US soybean industry bear a huge pressure. Some experts said that the increase in US soybean stocks and changes in the global soybean supply pattern may affect the global soybean pricing system.

"China price" is about to become a global standard, vying for soybean pricing power?

In the context of a change in the price structure of soybeans and a gradual loss of the leading position of soybean supply in the United States, De Bastiani said that Brazilian producers may no longer be priced in US dollars, but rather with the Dalian Commodity Exchange (" The “Da Shang Institute” is linked to the price of soybean futures, so that there is a safer and more stable price to stabilize the market. The reason why Brazil chose to link with the big business is that China, as the world's largest consumer of soybeans, has become a well-deserved "protagonist" in the soybean market.

While a large amount of imported soybeans are pouring into the Chinese market, in order to maintain national food security, promote healthy development of the industry, and master the international pricing power of soybeans, China's soybean industry and related industries are also actively using financial market instruments such as futures, and gradually in the soybean market. Gain a certain international voice. According to the introduction of the Dashang Institute, from the initial listing of soybean futures, to the subsequent listing of soybean meal, yellow soybean No. 1, No. 2, soybean oil, and then to the listed palm oil futures, the big business has gradually formed a collection of raw materials - pressing - - Feeding in one, a relatively complete industrial chain variety system.

The establishment of the system is conducive to the formation of "Chinese standards" and also to the formation of an open and transparent "China price." Taking “Yellow Soy 2” as an example, it is based on imported soybeans and is denominated and settled in RMB, reflecting the price of the Chinese market, which is conducive to increasing international influence and gradually becoming the benchmark price of the global soybean sales area. It seems that China has gradually become the home of global soybeans, and the rise of Chinese standards has been vying for soybean pricing power!

Despite China's huge imports of soybeans, "Chinese standards" and "China prices" are gradually entering the eyes of various countries, but China's current voice on soybean prices is still not enough. The international economic and trade situation allows us to see the defect of relying on the import of a few agricultural developed countries, that is, the price of imported agricultural products is extremely vulnerable to people. In this case, further promotion of the right to speak in the international market is still the key to the development of China's soybean industry.


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