Soybean

Prices of soybean rose in Indore owing to improved demand from oil millers and crushers. Indore market, soybean was selling at 3,575-3,625 rupees per 100 kg, up 25-30 rupees. A fall in arrivals amid higher demand from stockists also supported prices.

Imports of soybeans in the crop year that starts on Oct. 1 will be 93.85 million tonnes, down 1.8 million tonnes, or 2 percent, from last month’s estimate. Compares with its estimate of 95.97 million for the 2017/18 crop year and would be the lowest import level since the 2016/17 year. Meanwhile, crushers that make meal and oil from the beans will process fewer beans in favour of other protein substitutes. Meal made from rapeseed, peanuts and sunflower seeds are expected to be popular alternatives. The government also cut its soybean consumption forecast by 2 percent from the previous month’s outlook to 109.23 million tonnes. That would still be 1 percent higher than consumption in the 2017/18 crop year.

Chicago soybean futures edged up, recouping some of the last session’s deep losses which dragged the market to its weakest in almost 10 years on concerns over demand amid a U.S.-China trade dispute. The most-active soybean contract on the CBOT had risen 0.6 percent to $8.53-1/2 a bushel.

Futures contracts of all components of the edible oil basket, barring soybean, are seen rising on domestic exchanges. Soybean futures on the National Commodity and Derivatives Exchange are likely to fall due to a rise in sowing with the progress of the monsoon. Expected weakness in soybean futures on the Chicago Board of Trade may further weigh on prices on the Indian exchange. On the US bourse, soybean prices may fall due to strained ties between Washington D.C. and Beijing, and because the US Department of Agriculture gave a good rating for crop condition.

Prices of soybean surged in Indore as arrivals declined while demand from crushers rose. In benchmark Indore market, soybean was selling at 3,575-3,600 rupees per 100 kg, up 50 rupees from the previous close. Arrivals of soybean in Madhya Pradesh declined to 50,000 bags (1 bag=100 kg) from 60,000 bags. The near-month July contract rose 1% to 3,549 rupees per 100 kg, while the most active October contract fell 1%.

Area under soybean across the country was at 5.2 mln ha, down 4% from a year ago. Farmers have expedited the planting of the oilseed because the sowing window is drawing closer. However, the overall acreage is still lagging marginally on year as rains are playing truant in key growing regions of Madhya Pradesh. In Madhya Pradesh, area under soybean was at 2.8 mln ha, down from 2.9 mln ha sown in the year-ago period. Area under soybean would gather momentum in the coming days because the sowing window usually ends by the mid of July.

Prices of soybean in Indore were down as investors stayed on the sidelines ahead of a report on global supply-demand. In Indore, the benchmark market for soybean, the commodity was sold at 3,625 rupees per 100 kg, down 10-15 rupees. Lower demand for meal in the domestic market is also seen weighing on prices. The October contract of soybean on NCDEX was down 0.3%.

European Union soybean imports for July 1-8, the first reporting week of the July-June 2018/19 season, totalled 54,000 tonnes against 192,000 tonnes in the corresponding period last season. EU soymeal imports totalled 280,000 tonnes compared with a year-earlier 415,000 tonnes, while palm oil imports reached 70,000 tonnes versus a year-earlier 161,000 tonnes.

A ship carrying U.S. soybeans took off for China last week just before the Asian country’s retaliatory tariffs went into effect. The shipment of about 69,000 metric tons was loaded from the Pacific region in the week ended July 5. The following day, China imposed tariffs on a slew of American agricultural goods. The country’s ministry of commerce has told companies to boost imports of goods including soybeans from countries other than the U.S.

Prices of soybean in Indore rose, tracking gains in bellwether contracts on CBOT, and due to expectations of floods in the key growing areas of Madhya Pradesh. In Indore, the benchmark market for soybean, the commodity was sold at 3,575-3,625 rupees per 100 kg, up 25 rupees. In Maharashtra, sowing of soybean started 10-20 days ago, and any flood-like situation could hit the crop.

Prices of soybean were down in Indore on expectations of a rise in arrivals in the coming days amid subdued demand from crushers. In Indore, the benchmark market, soybean was sold at 3,500-3,550 rupees per 100 kg, down 50 rupees. Arrivals of soybean in Madhya Pradesh were estimated at 40,000 bags (1 bag = 100 kg), up from 33,000 bags. Arrivals are likely to rise to 100,000 bags in two-three weeks after sowing completes in the state. An increase in minimum support price for the oilseed in the kharif season by 349 rupees per 100 kg was below expectations as traders expected a 500-rupee hike. About 70% of sowing has been completed in Madhya Pradesh.

Brazil, the world’s largest soybean exporter, may have to import up to 1 million tonnes of the oilseeds from the United States by the end of this year to satisfy demand from local processors. If China’s demand for Brazilian soy rises amid a trade war with the United States, local processors may have to resort to imports from the United States.

Crushers had imported a total of 1.84 million mt of soybeans through ports in Argentina’s Santa Fe province during January-April.

Chinese stocks of soybean rose again last week hitting a record high of 8.86 million mt.

Argentina’s 2017/18 soy harvest ended at 36 million tonnes, below the 54 million tonnes estimated at the beginning of the season due to a severe drought.

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.

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.

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.

The government hiked the minimum support price (MSP) or purchase price for soybean crops up to Rs. 349 per quintal as it looked to fulfill its poll promise to give farmers 50 per cent more rate than their cost of production. The announcement of higher MSP coupled with the forecast of normal monsoon this year, could further boost foodgrains output. The MSP of soybean has been increased by Rs. 349 to Rs. 3,399 per quintal.

Chinese companies are expected to cancel most of the remaining soybeans they have committed to buy from the United States in the year ending August 31 once the extra tariff on US imports takes effect. China has yet to take delivery of more than 1.1 million tonnes booked for the current marketing year, last week that China had resold about 123,000 tonnes of committed deliveries to Bangladesh and Iran.