Day: May 9, 2018

Prices of soybean in Indore rose because of lower supplies and tracking gains in the oilseed contracts on CBOT. The most active May soybean futures were up 1.3%. However, the arrivals are lower on an average weekly basis.

Futures contracts of components of the edible oil basket rose on domestic exchanges. The most-active May contract of soybean on the National Commodity and Derivatives Exchange rose over 1%, in line with gains in key contracts on Chicago Board of Trade. Soybean prices on the Chicago exchange rose following reports of delay in sowing due to rains in key growing regions in the US.

Madhya Pradesh is targeting soybean production of 5.5 mln tn in 2018-19 (Jul-Jun), up from 5.3 mln tn produced in the previous year. The state, the top grower of soybean in the country, harvested a smaller crop in 2017-18 because of patchy monsoon in some parts of central India. A rise in acreage may also result in higher crop output this year. Farmers, who had moved to coarse grains in 2017-18 following low rains, are expected to return to soybean this year.

China’s April soybean imports fell 13.7 percent from the same month a year earlier to 6.9 million tonnes. The decline came in the same month that Beijing threatened to slap an additional 25 percent import duty on soybeans from the United States in an ongoing trade war between the world’s top two economies. China imports 60 percent of the oilseed traded worldwide to make meal for its massive livestock herd, with about a third of its imports typically from the United States.

For many reasons, Brazilian exports of soybeans to China are surging. First, following a record soybean crop of 4.19 billion bushels in 2016/17, Brazilian soybean ending stocks reached a record-high of approximately 940 million bushels. Then, Brazilian soybean farmers are expected to top that record with a crop of 4.23 billion bushels for the 2017/18 marketing year. Given two back-to-back record harvests, and record-large inventory levels, the increase in Brazilian soybean exports was no surprise. For the 2017/18 marketing year, Brazilian soybean exports are projected at a record-high 2.7 billion bushels, marking the eighth consecutive year of record soybean exports. Meanwhile, following back-to-back record soybean crops in the U.S., soybean exports are projected to fall 5 percent in 2017/18 to 2.1 billion bushels. Due to reduced export volumes, U.S. soybean ending stocks are projected at 550 million bushels.