Soybeans Analysis: Brazil cut soybean exports in February

By IFCMarkets

Brazil cut soybean exports in February

Market participants suppose an increase in demand for cheaper soybeans in China compared to relatively expensive meat amid falling economic activity in the industry due to coronavirus. In February 2020, the Chinese Caixin / Markit Manufacturing Purchasing Managers Index (PMI) crushed down to a historic low of 40.3 points, compared with 51.1 points in January. The Government of Argentina is going to increase export duties on soybeans by 3% to replenish the state budget. Nowadays they make up 30%. Theoretically, an increase in duties could adversely affect soybean production in Argentina.

Summary of technical analysis

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