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.
China expected to cancel 1.1 million tonnes of soybeans from the US as new tariff bites.
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.
US Cash Soymeal-Basis mostly unchanged on robust demand.
Soymeal spot basis offers were largely unchanged at US domestic and export markets as demand remained robust and soy crush margins hovered near the highest levels ever. The recent decline in Chicago Board of Trade soymeal futures enticed domestic livestock and poultry producers to buy train and truckloads of the animal feed. CBOT August soymeal touched a low of $328.20 per ton, the lowest since the roughly five-month low on June 19. Comparatively larger declines in prices for soybeans boosted profit margins for soybean processors. Crush margins on the CBOT of nearly $1.93 per bushel per bushel of soybeans. That is the highest nice record-large crush margins in 2014, suggesting processors could turn big profits. One cash dealer pegged profit margins on each ton of soymeal at about $50.
Brazil soybean exports fall 15.6%in June on trucker strike.
Soybean exports out of Brazil fell back to 10.42 million mt, down nearly 2 million mt compared to the month before.
India Govt hiked 200 rs/Qtl the paddy MSP.
The government hiked the minimum support price (MSP) or purchase price for paddy crops up to Rs. 200 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 paddy (common grade) has been increased by Rs. 200 to Rs. 1,750 per quintal, while that of Grade A variety by Rs. 180 per quintal to Rs. 1,770.
Rice stocks gain after govt. hikes paddy MSP.
Shares of rice mill operating stocks gained trade after the government increased minimum support price for paddy.
Japan to import 65,390 tonnes feed wheat and barley via tender.
Japan will import 27,210 tonnes of feed-quality wheat and 38,180 tonnes of barley for livestock use, via a simultaneous buy and sell (SBS) auction. The ministry had sought 120,000 tonnes of feed wheat and 200,000 tonnes of feed barley to be loaded by Oct. 31 and arrive in Japan by Dec. 28 in the tender that is usually conducted weekly. It is seeking the same amount for each grain to be loaded and shipped during the same period in a similar tender that will be held on July 11.
Japan offers to buy 79,770 tonnes of food wheat via tender.
Japan’s Ministry of Agriculture is seeking to buy 79,770 tonnes of food-quality wheat from the United States and Australia in a regular tender. it has suspended its tender and sale of wheat from Canada after grain containing a genetically modified trait was discovered last summer in Canada’s Alberta province.
Kansas winter wheat harvest was 71% completed.
Kansas winter wheat harvest was 71% completed by July 1 compared with 52% a week earlier and 63% as the 2013-17 average for the date. Harvest in adjacent states was 98% completed in Oklahoma (90% as the average for the date), 80% in Texas (83%), 7% in Nebraska (9%) and 21% in Colorado (9%).
CBOT Wheat rises 1 pct after deep losses.
Chicago wheat futures rose 1 percent as investors looked for bargains following deep losses in the previous session, although a lack of demand for U.S. shipments is expected to keep a lid on the market. The Chicago Board of Trade most-active wheat contract had risen 1 percent to $4.85-1/4 a bushel. There is limited downside risk to wheat prices when you look at the supply situation. But the focus seems to be demand, U.S. exports are not doing very well.
Soybeans down for 4th day, pressure from U.S.-China trade war.
Soybeans slid for a fourth consecutive session on headwinds from the ongoing U.S.-China trade dispute, while corn prices edged higher. Soybeans fell 0.2 percent to $8.67-1/2 a bushel.
Indian government is planning a price support scheme for paddy that it can’t afford.
The government is reportedly set to announce an increase of ?200 per quintal in the minimum support price (MSP) for paddy. This is the single highest increase in the MSP for paddy in a given year in India, besting the ?155 hike by the Congress in 2008-09. It is about to announce an increase of ?200 per quintal in the minimum support price (MSP) for paddy, bringing the overall MSP to 1,750.
NCDEX mustard seed at 1-month high on spot market cues.
The most-active July contract of castor seed on NCDEX hit a six-week high of 4,033 rupees per 100 kg, tracking gains in Jaipur. On NCDEX, the July contract was at 4,021 rupees per 100 kg, up 1%. Mustard seed prices rose in Jaipur, the benchmark market, due to a fall in arrivals and a rise in demand from domestic oil millers and crushers. In Jaipur, prices of the oilseed rose 15-20 rupees to 4,120-4,150 rupees per 100 kg. Arrivals of mustard seed in Rajasthan fell 25,000 bags (1 bag = 85 kg) to 100,000 bags.
Mustard seed prices up in Jaipur on low arrivals.
Mustard seed prices rose in Jaipur due to a fall in arrivals and a rise in demand from domestic oil millers and crushers. Ongoing monsoon season has lifted demand for mustard oil, supporting prices of the oilseed. Sluggish demand for mustard meal from overseas buyers, however, capped gains in prices.
Coriander a tad up in Kota on improved local demand.
Prices of coriander rose marginally in Kota, Rajasthan, despite higher arrivals, due to improved demand from processors. Processors have stepped up their purchases as coriander prices have fallen around 1,000 rupees per 100 kg since January, when fresh arrivals had started, due to higher carry-over stocks. In Kota, the benchmark market, badami variety was sold at 5,000 rupees per 100 kg and prices of eagle variety were at 5,250 rupees per 100 kg, both up 50-70 rupees. Arrivals of the spice in Rajasthan were pegged at 12,000 bags (1 bag = 40 kg), up 1,500 bags from previous day.
Soybean up in Indore on low supply, likely weak rain.
Soybean prices in Indore were up because of a decline in arrivals and worries of another break in monsoon. In the benchmark market of Indore, prices of soybean were up 50 rupees at 3,600-3,650 rupees per 100 kg. Arrivals of soybean in Madhya Pradesh were pegged at 30,000 bags (1 bag = 100 kg) today, lower than 40,000 bags. Lower acreage of soybean in the 2018-19 (Jul-Jun) kharif season so far is also seen supporting prices.
India soybean acreage so far 859,000 ha vs 1.54 mln ha year ago.
India kharif oilseed sowing so far 1.46 mln ha vs 2.60 mln year. This break in the monsoon current is likely to be a good opportunity for farmers to complete sowing operations.
USDA sees China 2018-19 soybean import up by 3.5 mln tn at 100.5 mln.
Imports of soybean by China are expected to rise to 100.5 mln tn in marketing year 2018-19 (Oct-Sep), up by 3.5 mln tn from the previous year, because of a growing demand for the protein meal. In 2018-19, the production of the oilseed in the country is seen 15.2 mln tn, up by 1.1 mln tn from the USDA’s June forecast of 14.1 mln tn. Marketing year 2018-19 total oilseed consumption to reach 164.3 mln tn based on the continued growth of the animal husbandry industry’s demand for protein meal. The country imported 60.3 mln oilseeds Oct-May compared with 59.2 mln tn in the year-ago period.
India may export 5 lakh tonne oilmeals to China post duty cut.
India is likely to export 4-5 lakh tonne of soymeal and rapeseed meal this year following China’s decision to cut import tariffs on soybean and some other goods from India. China’s cabinet has announced it will reduce tariffs on soybean imported from India, South Korea, Bangladesh, Laos, and Sri Lanka from the current three per cent to zero amidst a looming trade war with the US. The exports is likely to go up to 4-5 lakh tonnes, 2-3 lakh tonne soymeal and 2-3 lakh tonne rapeseed meal. India also presents a logistic advantage as the oilmeals can reach China in 5-6 days.
USDA says most of ’18-19 soy crop in good condition.
Around 73% of soybean crop in the US was in ‘good’ or ‘excellent’ condition in the week, unchanged from the previous week but 7 percentage points higher than the corresponding period last year.