Earlier this month, USDA reported the soybean crop would be more significant than the previous year in the USA.
Later that week, it released its report on U.S. Supply/Demand and World Production (WASDE) to which the CME groups farm market responded by being mostly dipped.
In the report For soybeans, the U.S. 2020 average yield estimate was pegged at 53.3 vs. the trade’s expectation of 51.2 bu./acre and the USDA’s July estimate of 49.8 bu./acre.
Some latest reports suggest that few areas such as the Midwest U.S. are facing drought-like conditions. As for soybeans, the state of crops in the United States has worsened while on the other side it is also reported that dry weather has also supported soybean production from Chicago as the Chicago soybeans rose to a seven-month high a few days ago, gaining for a fourth consecutive session, supported by strong Chinese demand and dry weather in parts of the U.S. Midwest. China, the biggest buyer of U.S. soybean honoring the trade deal, is set to buy at least 40 million tons this year.
As for the matter of fact From January to May this year, 7 of Brazil's top 10 exports by value were Agri products Soybean being on the lead as it also accounts for 26% of total Agri GDP, but reports again suggest Brazil is not left with much soy to offer.
As far as production in India is concerned a lot of soybeans is lost due to pest and disease attack in Madhya Pradesh, India also the damage was caused due to sudden heavy rains in the country creating a pleasant environment for the massive-scale attack of dormant Rhizoctonia, Aerial Blight, and anthracnose (pod blight), which infected the soybean plants.
Thus, the conditions of soybean production and trade are different in different parts of the world in the current scenario.