Soybean

Crude palm oil futures on Bursa Malaysia Derivatives settled largely flat as losses due to weakness in soyoil contracts on CBOT were offset by gains from a weak ringgit against the dollar. Prices of crude palm oil and soyoil typically move in tandem as the commodities are used as substitutes. Weakness in the Malaysian currency makes the commodity cheaper for buyers holding other currencies. The most active June contract of crude palm oil on the Malaysian bourse closed at 2,431 ringgits (40,936.63 rupees) per tn, down 0.1% from the previous close.

Soybean prices in Indore fell due to subdued demand from oilseed crushers.Farmers are offloading stocks because they are in need of money ahead of the wedding season. The most active May soybean contracts on the NCDEX were down 0.8%.

The forecast is up from Agrural’s view last month of 117.9 million mt and from last year’s record harvest of 114.4 million mt. The higher production is based on a planted area of 34.7 million hectares with an average yield of 3.4 mt/ha.

Soybean area and production levels for marketing year (MY) 2018/19 -July to June) in Bangladesh are projected to increase to 80,000ha and 152,000 tonnes respectively, due to a switch from Boro rice production. Soybean planting area and production estimates for MY 2017/18 are lowered to 60,000ha and 114,000 tonnes due to unsuitable conditions for planting at the optimal time, and the shift of land to Boro rice cultivation due to an expected higher harvest price. Meanwhile, MY 2018/19 soybean and soymeal imports are estimated to increase to 1.1 million tonnes and 550,000 tonnes respectively, to keep pace with demand in the feed industry, as well as growth in the livestock and fisheries sectors.

Soybean prices rose in Indore because of demand from crushers amid lower arrivals. Strong cues from soybean contracts on CBOT also helped domestic prices higher.

Prices of soybean fell in the benchmark market of Indore, Madhya Pradesh, due to a rise in supply. On NCDEX, the most-active May contract of soybean was trading down 0.3% from the previous close.

Prices of soybean fell in Indore, Madhya Pradesh, owing to lacklustre demand from domestic oil millers and crushers. A rise in arrivals of the oilseed also weighed on prices.

Futures contracts of soybean on NCDEX rose around 3% and hit a one-month high of 3,880 rupees per 100 kg, tracking gains in parent contracts on CBOT. Soybean contracts on CBOT rose over 1% on expectation of lower acreage under the crop in coming season. Prices of the oilseed were also up in the benchmark market of Indore, Madhya Pradesh.

Chinese restrictions on imports of soybean from the United States will harm the Chinese people more than US producers. Imposition of China duties on soybean import would cause an annual economic loss for the US between 1.7 billion USD and 3.3 billion USD. China buys nearly 60% of soy products that are traded globally, with over 30% of soybean imports coming from the United States.

US acreage for soy in 2018 to fall 1% 89 million acres. US Soybean stocks beginning of March 2.107 billion bushels. USDA private sale of 266,500 MT of soybeans to unknown destinations for 17/18 delivery. Export Sales report showed just 317,511 MT in old crop sales. 69,717 MT for new crop sales. Soy meal sales 184,052 MT, with soy oil at 34,589 MT.

Brazil’s soybean harvest has reached 71% up six percentage points in the week and just short of last year’s figure of 74% at this time of the harvest. In the North/Northeast, the harvest of the 2017/18 harvest reached 25% in Bahia, 50% in Maranhao, 56% in Tocantins, 40% in Piaui, 27% in Para and 97% in Rondonia.

The country’s soybean imports this year are likely to touch a record high of around 1 lakh tonne and this trend is expected to continue. India produced around 83-85 lakh tonne of soybean at the end of 2017, down from more than 110 lakh tonne a year ago. According to market sources, deals have been signed to buy up to 100,000 tonne of soybean mainly from Ethiopia and Benin in Africa. India has concessional import duty agreements with these countries. Deals have been reportedly signed at $410-520 a tonne for delivery to Indian ports.

Brazil is expected to export a record 72 million tonnes of soybeans this year, up from 68 million tonnes last season as a drought damaged Argentina’s grains and China’s potential retaliation of U.S. protectionism caused Brazil soybean premiums to widen in relation to prices in Chicago. Farmers will produce almost 119 million tonnes of soybeans this season as yields grew in key regions and in spite of a lack of rains in the south, which damaged the crop in states like Rio Grande do Sul.

Soybean prices fell in Indore, despite a decline in arrivals, due to weak demand before the end of the financial year.

Crude palm oil futures on the Bursa Malaysia Derivatives settled flat, as gains due to strength in soyoil contracts on CBOT were offset by a firm ringgit against the dollar. The most-active June contract of crude palm oil on the Malaysian bourse settled at 2,431 ringgits (40,702.11 rupees) per tn, down 3 ringgits from the previous close.

Bangladesh is likely to produce 152,000 tn soybean in the year 2018-19 (Jul-Jun), up 33%. The rise in soybean production in the country is attributed to favourable weather conditions, expected average yield and a rise in acreage.

Chicago soybeans rose on Monday as concerns over trade tensions between China and the United States eased, shifting attention back towards crop damage in Argentina. Corn also firmed, while wheat edged lower after touching a one-week high as investors assessed the impact of rain in parched US growing belts. The Chicago Board of Trade’s most-active soybean contract gained 0.5 percent to $10.33-1/2 a bushel after hitting a one-week peak of $10.40-1/4. Soymeal, of which Argentina is the world’s biggest exporter, was up 1 percent at $381.8 a tonne.

Brazil’s massive soybean harvest has reached 65% of the expected planted area, up seven percentage points on the week, but behind the 68% harvest level of last year.