USDA says recent rains helped spring wheat crop.
Oilseeds WASDE August Outlook
U.S. oilseed production for 2017/18 is projected at 130.9 million tons, up 3.9 million from last month mainly due to higher soybean production. Soybean production is forecast at 4,381 million bushels, up 121 million on higher yields. Harvested area is forecast at 88.7 million acres, unchanged from July. The first survey-based soybean yield forecast of 49.4 bushels per acre is 1.4 bushels above last month but 2.7 below last year’s record. With higher production and lower beginning stocks, soybean supplies for 2017/18 are projected at 4,777 million bushels, up 2 percent from last month. U.S. soybean exports are raised 75 million bushels to 2,225 million on increased supplies and lower prices. Crush is reduced on lower global soybean meal import demand. Soybean ending stocks are projected at 475 million bushels, up 15 million from last month. The U.S. season-average soybean price for 2017/18 is forecast at $8.45 to $10.15 per bushel, down 10 cents at the midpoint. The soybean meal price forecast of $295 to $335 per short ton is down $5.00 at the midpoint. The soybean oil price is forecast at 31 to 35 cents per pound, up 1 cent on both ends of the range. U.S. changes for 2016/17 include higher exports, lower crush, and lower ending stocks. Soybean exports are raised 50 million bushels to 2,150 million on outstanding export sales and shipments through July. With lower crush only partly offsetting higher exports, ending stocks are projected at 370 million bushels, down 40 million from last month. Global oilseed production for 2017/18 is projected at 576.7 million tons, up 2.8 million, mainly on a 2.3-million-ton increase for soybean production. The higher U.S. forecast was partly offset with a 1.5-million-ton reduction for India based on the latest government planting data indicating lower harvested area. Soybean and canola production is projected down for Canada, where hot and dry weather conditions in the Canadian Prairies lowered yield prospects for both crops, and excessive rainfall in eastern Canada led to a lower soybean harvested area estimate. Other changes include increased sunflowerseed production for Russia, increased rapeseed production for the EU, and lower peanut production for India. Global soybean exports for 2017/18 are up 1.5 million tons as higher U.S. exports are partly offset by lower Argentina shipments. Beginning stocks for 2017/18 are raised based on lower crush and exports for Argentina for 2016/17. Coupled with higher production, 2017/18 soybean ending stocks are increased 4.3 million tons to 97.8 million.
USDA Ups Soybean Yields, Lowers Price Forecast.
Soybean yield forecast of 49.4 bushels per acre is 1.4 bushels above last month but 2.7 below last year’s record. With higher production and lower beginning stocks, soybean supplies for 2017/18 are projected at 4,777 million bushels, up 2 percent from last month. U.S. soybean exports are raised 75 million bushels to 2,225 million on increased supplies and lower prices. Crush is reduced on lower global soybean meal import demand. Soybean ending stocks are projected at 475 million bushels, up 15 million from last month.The U.S. season-average soybean price for 2017/18 is forecast at $8.45 to $10.15 per bushel, down 10 cents at the midpoint. The soybean meal price forecast of $295 to $335 per short ton is down $5.00 at the midpoint. The soybean oil price is forecast at 31 to 35 cents per pound, up 1 cent on both ends of the range.
CBOT soybean futures gain on erratic weather in US.
Futures contracts of soybean traded higher on CBOT following weather vagaries in the US. The most active November contract on CBOT was at $9.7575 per bushel, up 0.3% from the previous close.
Malaysia Jul palm oil output up 20.7% on month at 1.83 million tonne.
Malaysia crude palm oil production in July was up 20.7% on month to 1.83 million tonne, and palm oil exports increased 1.3% to 1.40 million tonne. Stocks of palm oil in Malaysia were at 1.78 million tonne at the end of July, up 16.8% on month. Crude palm oil stocks were at 936,438 tonne at the end of July, up 17.3% on month. Processed palm oil stocks, also rose 16.3% on month to 847,705 tonne. Biodiesel exports were at 50,580 tonne in July, up from 9,440 tonne sold overseas in June.
Palmolein oil rise on upbeat demand.
Prices of palmolein rose by Rs 50 per quintal at the wholesale oils and oilseeds market on pick-up in demand from vanaspati millers and retailers. However, non-edible oils held steady in tight movements. Traders said uptick in demand from vanaspati millers and retailers mainly attributed the rise in palmolein and soyabean oil prices.
NCDEX soybean up on slow progress of kharif sowing.
Futures contracts of soybean rose nearly 1% on NCDEX due to slow progress of kharif sowing in Madhya Pradesh, the largest grower of the oilseed. The most-active October contract of soybean on the NCDEX was at 3,128 rupees per 100 kg, up 0.7% from the previous close. So far, this kharif season, farmers have planted soybean across 4.5 million ha in Madhya Pradesh, down 12.5% from the previous year, according to data from the farm ministry. Rise in exports of soymeal, a derivative of soybean, by 150% on year in July also supported prices.
Soybean prices rise in Indore on firm demand.
Prices of soybean rose in the key wholesale market of Indore due to strong demand from oil millers. Firm exports of soymeal have also been supportive for soybean prices. In July, India soymeal exports rose over 150% on year to 30,678 tonne.
India Soybean gains on bullish global, spot sentiments.
Paring weakness from the previous session, soybean contracts on the National Commodity & Derivatives Exchange traded higher bolstered by firm buying from crushers, backed by upbeat soymeal exports. Gains in the bellwether soybean contract on the Chicago Board of Trade also propped up the prices on the Indian exchange. Taking cues from soybean, refined soyoil contracts on the NCDEX and crude palm oil on the MCX traded higher owing to rise in demand in wholesale markets and talks of a duty hike on imports of palm oils. Soybean traded higher on the US exchange following weather vagaries in the US.
Tur prices up in Akola as buying by millers improve.
Prices of tur in Akola, Maharashtra, rose because dal millers stepped up purchases ahead of festivals.
NCDEX chana up as dal millers buy ahead of festivals.
Futures contracts of chana traded higher on the NCDEX due to demand from dal millers ahead of festivals. The most active September contract on the NCDEX was up 1% from previous close.
NCDEX raises transaction fee for chana contracts effective Aug 16.
The National Commodity and Derivatives Exchange Ltd increased the transaction fee on futures contracts of chana to 4 rupees per 100,000 rupees of turnover for an average daily turnover of up to 250 million rupees. The new transaction fee will be effective from Aug 16. Earlier, transaction fee for chana contracts were flat 2 rupees per 100,000 rupees.
NAFED procures 59,700 tonne of 2016-17 chana from 4 states.
The National Agricultural Cooperative Marketing Federation of India has bought over 59,700 tonne of chana from the 2016-17 (Jul-Jun) rabi crop as of Monday from farmers of Madhya Pradesh, Uttar Pradesh, Rajasthan, and Haryana under the price stabilisation fund. The agency has procured 14,213 tonne of the pulse from 25 centres set up in Madhya Pradesh, 1,144 tonne from two centres in Uttar Pradesh, and the rest from the Adampur centre in Haryana. The maximum amount of 20,560 tonne was procured in Rajasthan Bikaner district. Pace of procurement is slow in Uttar Pradesh and Haryana due to rains in the ongoing monsoon season.
Sugar Extends Losses on Strong Brazil Harvest Prospects.
Sugar futures declined, extending losses for a crop that has been weighed down by abundant harvest prospects in Brazil. Raw sugar for October delivery declined 2.9% to settle at 13.24 cents a pound, extending its losses to the eighth consecutive session on the ICE Futures U.S. exchange. The market expected record 50.69 million tons of cane was crushed in the second half of July in central-south Brazil, up 2.6% on the year. Sugar is being pressured because the harvest has been going full-speed for two months, which is the longest stretch of dry weather in at least four years.
Pakistan sugar price up on limited supply.
Despite huge stock in the country, the rates of sugar in wholesale market have increased by around Rs500 per 50kg during the last week due to limited sugar supply from the mills. As a result, the prices in retail market have jumped by Rs5 to Rs60 per kg from earlier rate of Rs55 per kg. Presently, no shopkeeper is following the official rate of sugar to sell the commodity at Rs55 per kg with some of the retailers refusing to sell white sweetener. The rates have surged because the mills had put an unannounced ban on supply in protest against the government for not allowing export of sugar. He said that the dealers could not lift sugar from the mills despite an upward surge in its prices.
Nestle to reduce sugar and salt content in its products.
Nestle R&D Centre Singapore is committed to cutting down the sugar and salt content in its products by 2020. The food and beverage company is looking at reducing the sugar content by five per cent and salt by 10 per cent within the next three years.
ISMA says time ripe for Rangarajan in Uttar Pradesh cane price.
The time may be ripe to implement the Rangarajan formula for sugarcane pricing, read a central government letter to Uttar Pradesh in July, sking it to do away with the state-advised cane price. While the government and sugar industry seem to be on the same page in this regard, the move is unlikely to go down well with the state cane farmers. Farmers across the country, including those in Uttar Pradesh, have been demanding higher prices for their crops due to rising input costs. Although the Centre fixes cane price every year, some states like Uttar Pradesh, have been typically fixing a higher price for cane over the years to woo farmers, who comprise a chunk of the vote bank. The revenue-sharing formula recommended by the Rangarajan committee, set up during the United Progressive Alliance regime, entitles farmers to a price equivalent to 75% of the mills average realisation from sale of sugar and its by-products.
Sugar prices down in Delhi, steady in Mumbai.
Prices of sugar fell in the key wholesale markets of Delhi because of weak demand from bulk buyers. Millers have lowered prices of sugar to trigger demand. Sugar prices in Mumbai, however, were steady in a thin trade. Buyers are in a wait-and-watch mode. Everyone is waiting for government action. The government is likely to allow import of 300,000-500,000 tonne of sugar at zero duty to augment supply during the upcoming festival season.
Sugar WASDE August Outlook
U.S. beet sugar production for the 2017/18 August-July crop year is increased by 89,500 short tons, raw value (STRV) to 5.131 million based on area and sugarbeet yield forecasts made by NASS in Crop Production report. Early-season production occurring in August and September is projected to constitute 10.7 percent of the total. Revised fiscal 2016/17 production of 4.998 million STRV incorporates the updated early season production. The projection for fiscal 2017/18 is 5.068 million STRV, up 80,000 from last month. Although NASS forecasts reduced area harvested for both Florida and Louisiana sugarcane, forecast yields in both states are up strongly over last year. Florida cane sugar production for 2017/18 is increased by 126,000 STRV to 2.126 million and Louisiana is increased by 26,000 STRV to 1.626 million. USDA increased the 2016/17 raw sugar tariff-rate quota (TRQ) by 269,724 STRV and extended the time under which the sugar can enter by an additional month to October 31, in the 2017/18 fiscal year. The Office of the U.S. Trade Representative allocated this amount and reallocated existing, but yet unshipped, raw sugar TRQ among supplying countries. It is estimated that an additional 148,470 STRV of TRQ raw sugar will enter in 2016/17 and 161,499 STRV in 2017/18. Sugar imported from Mexico is projected to increase by 103,932 STRV in 2016/17 after the Commerce Department increased the 2016/17 Export Limit but is reduced by nearly that same amount in 2017/18 due to lower beginning stocks in Mexico. Re-export imports of 25,000 STRV previously estimated to enter in 2016/17 are now projected to enter in 2017/18. High-tier tariff imports for 2016/17 are reduced to 10,000 STRV, based on the pace to date. Mexico 2016/17 sugar imports and deliveries for consumption are up fractionally based on the pace to date. Deliveries in 2017/18 are increased marginally to keep sweetener consumption per capita the same as in 2016/17. Exports to the United States in 2016/17 are increased by 88,949 MT to match the Export Limit increase made by the Commerce Department. These adjustments for 2016/17 imply a reduction in ending stocks of 86,577 MT. Exports to the United States for 2017/18 are residually projected at 1.466 million MT, an amount 94,091 lower than projected last month.