Day: July 5, 2018

Chinese companies are expected to cancel most of the remaining soybeans they have committed to buy from the U.S. in the year ending Aug. 31 once the extra tariff on U.S. imports takes effect from Friday. China is the world’s top soybean buyer and has yet to take delivery of about 1.14 million metric tons of U.S. soybeans booked for the current marketing year. China had resold some 123,000 tons of committed deliveries to Bangladesh and Iran.

ADM and Cargill have successfully completed their transaction and formally launched SoyVenTM their new joint venture to provide soybean meal and oil for customers in Egypt. SoyVen owns and operates the National Vegetable Oil Company soy crush facility in Borg Al-Arab, along with related commercial and functional activities, including a separate Switzerland-based entity supplying soybeans to the Egypt crush plant. The plant’s daily crush capacity has been doubled to 6,000 metric tons in order to meet increasing Egyptian demand for higher-protein soybean meal and for oil, reducing the need for imports. The demand for high-quality soybean meal and for oil from both the food manufacturing and animal feed sectors continues to rise.

Indian Prime Minister Narendra Modi’s pre-election gambit to sharply hike state-mandated prices for summer crops, including soybean, may mean little to millions of farmers, as the government lacks the storage and funds needed to buy most of the produce. The government announces MSPs for most crops to set a benchmark, but state agencies mainly buy limited quantities of staples such as rice and wheat at those prices, restricting benefits of higher prices to only around 7 percent of the country’s 263 million farmers. Implementing the scheme in full would be expensive, economists say. The government’s fiscal deficit target for the current financial year, at 3.3 percent of GDP, is already under pressure due to high oil prices.