The International Grains Council (IGC) soy price index, which stood at 187 points on 10 August 2020, made a steady climb to 194 points last Monday, which is the same level it was at in October 2018. The price increase is attributable mainly to good demands and to possible storm damage to soybean crops in the United States.
Several incentives on the international market are causing the price of soybeans to rise. The National Oilseed Processors Association in the US (NOPA) published smaller soybean stocks than previously expected. Domestic soy consumption in the last period was higher than expected, which supports the continued rise of the soy price.
Furthermore, the American sales figures of soy are good, in particular with regard to China. According to the latest USDA Wasde report, 165.6 million tons of soy will be exported worldwide in the 2020-2021 season, which is almost 4 tons more than was expected a month earlier. The US are expecting at least half of this to go into extra sales, and they are not the only ones: Argentina and Brazil are also selling an additional 1 million tons of soy each this marketing season. China and Southeast Asia are expected to purchase more.