Oilseeds

Russian growers held 4007.4 KMT of oilseeds, or 584.9 KMT (12.7%) less than at the same time last year (4592.3 KMT). The oilseed inventories gained 1058.8 KMT in October. Farmer sunseed stocks totaled 2240.6 KMT, or 548.5 KMT (19.7%) less than at the same time last (2789.1 KMT). They increased by 657.6 KMT in October.

The government reduced the base import price of all edible oils, with the steepest plunge of $26 per tonne in crude palm oil. The base import price for crude palmolein and refined, bleached and deodorised palmolein were cut by $21 each.

Ukraine’s first organic vegoil plant Ukroliya Organic is being put into operation in Poltava region. The plant is projected to annually process 18 KMT of sunseed, 50 KMT of soybeans.

September’s oilseed exports from the country totaled a record 45.7 KMT, or 1.8 times more than a year ago. This month, the top importer was China, which received 11.6 KMT, or 25% of total oilseed exports from Kazakhstan.

According to the Agricultural Economics Institute, rapeseed production in Ukraine amounted to 2.214 MMT in 2017, or 91.9% more than a year ago. The rapeseed crop increase results both from a rape acreage expansion by almost 1.8 times and a 7.4% yield rise. Sunseed production will amount to 12.05 MMT in 2017 (down 11%). The soybean crop will amount to 2.884 MMT (down 9.2%).

Futures of all components in the edible oil basket rose, with soybean contracts gaining the most. Futures of soybean on the NCDEX rose nearly 2% supported by the recent import duty hike on the oilseed. Mustard contracts on the NCDEX traded higher taking cues from the benchmark market of Jaipur.

India has increased duties on imports of vegetable oils to its highest levels in a decade. The rate imposed by the Indian government hikes from 17.5% to 30%, while the duty refined soybean oil raised from 2o% to 35%. The new duties harm mostly Argentinian and Brazilian exports, which were nearly US$ 100 per ton more competitive than the locally-produced oil, but it will also hurt Malaysian and Indonesian exports.

Futures contracts of all constituents in the edible oil complex hit their upper circuits on the National Commodity and Derivatives Exchange and the Multi Commodity Exchange of India after the government raised the import duty. Crude palm oil contract on the MCX hit 4% upper circuit as the government raised the duty of the crude and refined palm oil. The most active December futures of soybean on the NCDEX hit a 3% upper limit. Refined soyoil contracts also hit a one week high of 698.95 rupees per 10 kg. Mustard seed futures also ended higher because of import duty rise.

The Egyptian state buyer GASC purchased 32.5 KMT of sunflower oil and 10 KMT of soybean oil in a tender held on November 14, 2017. the sunflower oil was bought at a price of USD 790/MT from Aston (22.5 KMT) and ADM (10 KMT) and the soybean oil was bought at a price of EGP 14670 (USD 831.63/MT) from Watanya/Cargill (10 KMT). The delivery period is January 1-15, 2018.

The government today raised the base import price of all edible oils, with the steepest increase of $23 per tn in crude soyoil. The base import price for crude palm oil and refined, bleached and deodorised palm oil were raised by $8 per tn each.The government revises base import prices every fortnight, based on global prices and changes in foreign exchange rate. Prices were last revised on Oct 31. India is a net importer of edible oils. In 2015-16 (Nov-Oct), it imported a record 14.6 mln tn of edible oils.

The US Department of Agriculture has raised its estimate for global oilseed output in 2017-18 to 578.82 mln tn from 576.99 mln tn projected in October. The department has raised its forecast for global soybean output to 348.89 mln tn, up by 101,000 tn from the previous month forecast. The agency has estimated Brazil soybean output at 108 mln tn, up by 1 mln tn, due to a rise in area under the crop in the hrowing areas Parana and Rio Grande do Sul. Soybean production in the US, one of the major growers of the oilseed, however, is seen slightly lower at 120.44 mln tn, against the October forecast of 120.58 mln tn.

Total U.S. oilseed production for 2017/18 is projected at 132.1 million tons, down 0.1 million from last month due to lower soybean and peanut production. Soybean production is forecast at 4,425 million bushels, down 5 million due to a fractionally lower yield. With use unchanged, soybean ending stocks are projected at 425 million bushels. Prices for soybeans and soybean meal are raised this month. The U.S. season-average soybean price is projected at $9.30 per bushel, up 10 cents at the midpoint. The soybean meal price is projected at $295 to $335 per short ton, up 5 dollars on both ends of the range. The soybean oil price projection is unchanged at 32.5 to 36.5 cents per pound. The foreign oilseed supply and demand forecasts for 2017/18 include higher production, exports, and stocks compared to last month. Foreign production is forecast at 446.7 million tons, up 2.0 million with higher soybean, peanut, cottonseed, and rapeseed partly offset by lower sunflower seed. Soybean production for Brazil is increased 1 million tons to 108 million on higher reported area for Parana and Rio Grande do Sul. Peanut production is increased for India on higher yields for the state of Gujarat. Sunflower seed production is lower for Ukraine, Argentina, and South Africa. Major foreign soybean trade changes for 2017/18 include higher exports for Brazil and Paraguay, with increased soybean imports for China. Foreign soybean ending stocks for 2017/18 are up from last month, mostly reflecting increases for China, Argentina, and Brazil.

Select edible oil prices firmed up at the wholesale oils and oilseeds market following pick up in demand from retailers.

Soy oil rose 0.8 percent even as crude oil dipped for the first time since the November 01. Soy farmers have finished harvesting 90 percent of the soybean crop, almost matching the five-year average pace of 91 percent. US Most-traded January canola closed at $520.10 per tonne, up $1.20

The government may raise the import duty on edible oils and export incentives on soymeal to push domestic prices of soybean above minimum support price. It was suggested to raise import duty on refined edible oils to 45% and on crude palm oil to 35%. Also discussed to double the incentive on soymeal exports to 10% from 5%. Both the steps help push soybean prices above the minimum support price.

Solvent Extractors’ Association of India (SEA) has once again requested the Centre to increase the import duty on edible oils. The demand for a hike in import duty comes in the backdrop of the Gujarat government’s groundnut procurement at ₹900 per 20 kg.

Oilseed stocks totaled 967.9 KMT as of October 1, 2017, or 72% more than a year ago (+405.5 KMT) – 562.4 KMT was available as of October 1, 2016. The rise was seen in stocks of staple oilseeds. So, sunseed availabilities have doubled since last year (+74.5 KMT) and reached 145.1 KMT, while linseed inventories are up 87.6% (+213.2 KMT) at 456.6 KMT, soybean inventories up 78% (+19.8 KMT) at 45.2 KMT and rapeseed stocks up 42.5% (+74.2 KMT) at 248.6 KMT.

Govt cuts crude palm oil base import price to $719/metric tonne vs $743/metric tonne. Cuts RBD palm oil base import price to $751/metric tonne vs $780/metric tonne. Cuts crude palmolein base import price to $754/metric tonne vs $785/metric tonne. Cuts RBD palmolein base import price to $757/metric tonne vs $788/metric tonne. Cuts crude soyoil base import price to $824/metric tonne vs $851/metric tonne.

Bulgaria’s oilseed markets featured stability during past week, but dollar prices fell again because of currency exchange differences. So, purchase prices for sunseed remained at BGN 541/MT that is equivalent to USD 324/MT (down USD 2/MT). Rapeseed purchase prices stayed at BGN 667/MT that is equivalent to USD 399/MT (down USD 4/MT). The sunseed harvest has entered its final stage with a 1.8% higher yield level than last year. This factor is pressuring prices despite active export shipments (up 58.1% year-on-year) and strong demand for the feedstock.