Soybean

Futures contracts of soybean on NCDEX fell nearly 1% as investors booked profits after prices rose in the last four trading sessions following the hike in import duty on the oilseed. The most-active December contract of soybean on NCDEX was down 0.8% from previous close.

Futures contracts of soybean rose towards the minimum support price following reports that the government may double incentive on export of oilmeals. The most active December contract of soybean on the NCDEX ended 0.4% higher. The minimum support price of soybean for 2017-18 is 3,050 rupees per 100 kg, which includes a one-time bonus of 200 rupees.

Brazilian farmers are expected to collect 111 million tonnes of soybeans in the 2017/18 season. Also estimates a 3 percent rise in soybean planted area, to a record 35 million hectares, as more farmers opted to plant the oilseed instead of corn during the Brazilian summer. Last season, Brazilian farmers collected a record 114.7 million tonnes of soybeans.

The plant’s design capacity is 600 MT of soybeans a day. It is projected to produce hydrated soybean oil, deodorized soybean oil (both bulk and PET-bottled), soybean meal (both granulated and non-granulated), and granulated soybean husks.

Futures contracts of soybean on the National Commodity & Derivatives Exchange are rising towards the minimum support price following reports that the government may double the incentive on export of oilmeals. The government is likely to double the incentive on export of oilmeals to 10% to support domestic oilseed prices.

Oilseed harvesting is almost complete in Ukraine. As of November 21, sunseed was gathered from 5890.4 Th ha or 99% of its intended area (5955.8 Th ha). Farmers obtained 11822 KMT of sunseed with average yield 2.01 MT/ha which is 11.5% lower than last year. Farmers gathered 3641.1 KMT of soybeans from 1899 Th ha out of intended 1990.1 Th ha. The average yield was 1.92 MT/ha, as of November 21 (-16% compared to last year). Winter rapeseed had been sown at 861.6 Th ha that is 12% more than planned (769.2 Th ha). Last year winter rapeseed area was 844 th ha.

Soybean futures were marginally to 1 1/2 cents lower. December meal was down $1.50/ton, with nearby bean oil 22 points higher. The USDA announced a private export sale of 130,000 MT of Soybeans to China for 17/18 delivery.

Production is estimated at a record 8.3 Mt, up 27% from last year’s record of 6.6 Mt. The increase is largely due to the sharp increase in harvested area, to 2.93 Mha, more than 0.71 Mha higher than last year. About 64% of Canada’s soybeans are expected to be grown in Eastern Canada and 36% in Western Canada. Soybean yields are estimated at 2.84 t/ha compared to 2.97 t/ha for 2016-17. Total supply is forecast to increase by 20% from last year to 8.9 Mt due to the sharp rise in output which more-than offsets the minor decrease in carry-in stocks and imports. The forecast for domestic crush has been lowered by 0.1 Mt, from last month, to 1.8 Mt. This is marginally lower than last year and below the record set in 2015-16. The revised crush forecast is supported by the slowdown in the crush pace. Canadian oilseed processors are operating at 56% capacity for the year to-date compared to 62% last year at this time. Exports are forecast to rise sharply to a record of 6.1 Mt versus 4.5 Mt in 2016-17 and the five-year average of 3.8 Mt. Soybeans are forecast to be the third largest crop exported from Canada after wheat ex-durum and canola with buyers widely dispersed by country. Compared to last year, carry-out stocks are forecast to rise significantly with most of it in commercial stocks. Soybean prices are forecast to decrease from last year to a range $400 to $440/t. The price outlook has been pressured by lower US farmgate prices in the soybean complex and the stronger Canadian dollar. The main factors to watch are: (1) harvest progress in Eastern Canada, (2) Canadian crush and export pace, US export inspection pace, (4) US harvest progress, (4) South American planting pace, and the strength of Chinese buying.

Soybean futures were marginally to 1 1/2 cents lower. December meal was down $1.50/ton, with nearby bean oil 22 points higher. The USDA announced a private export sale of 130,000 MT of Soybeans to China for 17/18 delivery.

The Nebraska Department of Agriculture (NDA) has signed letters of intent with nine soybean processing companies in Bulgaria. The agreement promote Nebraska soybeans and soybean products in their facilities. The companies want to maximize their output and are looking to source Nebraska and U.S. soybeans. They use about 2 million metric tons of soybeans per year. They have a total production capacity of 2.7 million metric tons.

Soybean and soyoil futures on NCDEX and crude palm oil contracts on MCX may open higher as the government has hiked import duty on these commodities. The most-active November contract of CPO on MCX had ended 0.7% higher at 547.1 rupees per 10 kg. The December contract of soybean on NCDEX closed down 0.1% from previous close.

Soybean meal exports from Ukraine increased to 13.2 KMT in September 2017/18 against 11.7 KMT in August 2017 and 5.7 KMT in September 2016. Growth of soybean crushing early in the season pushed them up to the second highest level after the record export volume of September 2015/16 (15.7 KMT). Belarus begins the new 2017/18 season with more active purchases of Ukrainian soybean meal: the country stepped them up to 4.5 KMT against 0.7 KMT a year ago. Now Belarus holds the leading position among importers – its market share equals 34%. In addition, EU countries maintain an upward import trend and absorb 28% of total soybean meal exports from Ukraine.

Soybean prices in Indore were unchanged as lower arrivals were offset by weak demand from oil millers. Farmers brought fewer stocks to the market as lower prices discouraged them to offload their inventory. The most active December futures contract of soybean on NCDEX ended 7 rupees lower.

Soybean futures ended almost 1% lower on the National Commodity Derivatives Exchange because of higher supplies in major wholesale markets in the country. Prices fell also as farmers are offloading stock in markets to raise funds for rabi crop sowing.

Futures contracts of soybean on the NCDEX fell nearly 1% mainly because of high arrivals in major spot markets. The most active November contract of soybean on the NCDEX was down 0.6% from the previous close. However, expectations of a hike in import duty on edible oils restricted further losses.

Futures contracts of soybean on the CBOT rose in the electronic trade due to bargain buying after the contract hit its six-week low. The most-active January contract of soybean on the CBOT was at $9.6825 per bushel, up 0.1% from the previous close.

India’s soybean carry-over stocks estimate as on Oct 1 has been revised lower to 1.39 million metric tonne from 1.59 million metric tonne. Soybean carry-over stocks has been revised lower on fresh export data of soymeal for August, thus updating total exports for Oct to August in 2016-17 to 1.97 million metric tonne. For the new season starting October, soymeal exports were pegged at 67,000 metric tonne as compared to 44,383 metric tonne a year ago. The output of soybean in the 2017-18 (Oct-Sep) is estimated at 9.15 million metric tonne down 16.8% on year.

Futures contracts of all components in the edible oil basket declined on domestic exchanges as there was no fresh development on the anticipated hike in the import duty on oilseeds The industry had demanded a hike in import duty on edible oils to support the prices of home-grown oilseeds. Soybean on National Commodity and Derivatives Exchange ended around 1% lower because of higher arrivals of fresh crop in key mandis. India’s vegetable oil imports rose around 5% on year to 15.4 million metric tonne in the year-ended October. Palm oil imports rose marginally to 9.3 million metric tonne compared with 8.4 million metric tonne during the previous year.

The National Agricultural Cooperative Marketing Federation of India has procured 22,213 tn of kharif soybean in Rajasthan, Telangana, and Maharashtra. NAFED started procuring soybean under the price support scheme as market price of the commodity fell below the minimum support price of 3,050 rupees per 100 kg, inclusive of a bonus of 200 rupees. Over 12,500 farmers have gained from the procurement that began in early October.

Soybean falls in Madhya Pradesh on weak demand.