Soybean

India export of soybean meal and its other value-added products in August is 0.50 lakh tonne compared to 0.27 lakh tonne in August last year, showing an increase of 86% over the same period last year. On a financial year basis, the exports during April-August 2017 is 5.57 lakh tonne compared to 1.47 lakh tonne in the same period previous year, showing an increase of 280%. During the current oil year, (October – September), total exports during October 2016 to August 2017 is 17.35 lakh tonne against 3.75 lakh tonne during the same period last year, registering an increase of 362.13%.

Soyabean and mustard oil prices rose by up to Rs 150 per quintal at the wholesale oils and oilseeds market on stockists buying following uptick in demand from retailers against restricted supplies from producing belts. Traders said stockists buying, driven by pick-up in demand from retailers against restricted supplies from producing belts, mainly led to the rise in soyabean oil and mustard oil prices.

Dry spells during monsoon have led to pest attack and undergrowth in kharif crops in the state Hadauti region. Hadauti region witonneessed deficient rains in this monsoon season whose brunt was faced by the farmers. Soybean crop, which is sown in 5.60 lakh hectares area in the region’s four districts Kota, Bundi, Baran and Jhalawar, is the worst affected kharif crop. Tobacco caterpillar, a typical soybean crop pest, has infested the crop.

Ukraine exported a total 15.2 KMT of soybean oil in July 2017 against 19.5 KMT a month earlier and 11.8 KMT in July 2016. Overall, in the eleven months of MY 2016/17, Ukrainian soybean oil exports hit an all-time high of over 163 KMT – this is up almost 15% from the same time last season (142 KMT). Apart from an expansion of the end markets for Ukrainian soybean oil, a change of leaders is observed in the 2016/17 season due to growing shipments to EU countries (40% of total exports) and falling ones to China (27%). The stable demand from India brought this country to the ranks of top importers: it gained a 17% export share. As a reminder, Bangladesh and Saudi Arabia not only started purchases of the Ukrainian product, but also got significant niches in the export structure, 4% each.

Prices of soybean fell in the key wholesale markets of Indore, Madhya Pradesh, due to arrival of fresh crop in the market. In 15-20 days, supplies in full swing and daily arrivals in Indore are seen at 10,000-15,000 bags. The most active October contract was down 0.4% from the previous close.

Soybean futures contracts rose over 1% on the CBOT on concerns of damage to the US soybean crop due to hurricane Harvey. After Harvey, investors are tracking developments on hurricane Irma which is expected to reach the Gulf of Mexico in a few days. Prices rose also on expectations of a fall in the country’s soybean yield due to dry weather over the US Midwest which is the key soybean-growing region. The most active November contract of soybean on the CBOT was at $9.7625 per bushel, up 0.5% from the previous close.

Futures contracts of edible oils traded mixed, with soybean and mustard falling and refined soyoil and crude palm oil rising on domestic exchanges. Soybean closed marginally lower on the National Commodity and Derivatives Exchange due to arrival of fresh crop in the key markets of Madhya Pradesh, the largest grower.

China, the world top soybean buyer, imported 8.45 million tonnes of the oilseed in August. A record for the month of August, as improving margins boosted demand from buyers. The August figures were up 10.2 percent from last year’s 7.67 million tonnes, but down 16.2 percent from 10.08 tonnes in July.

The National Cooperative Dairy Federation of India buy 200 tonne of de-oiled soybean cake and 200 tonne of groundnut extractions through a reverse auction on Sep 19.

Muhurat of fresh soybean was held at Indore mandi. Quality of seed is satisfactory but size of the seed is small. Moisture content in the new crop is 20-25% while the ideal level is 10-12%. Condition of the standing crop is improving because of recent rains. However dry spells during prime pod filling period hit the growth of the plant and size of the seed. Arrival of fresh crop has also been reported in Mandsaur, Neemuch, Dhar, Jaura, Mahu, and Khandwa mandis this week.

Futures contracts of edible oils traded lower because of reports that arrivals of the kharif oilseed crop had started, as well as due to weakness in global markets. Soybean settled 1.3% lower on the National Commodity and Derivatives Exchange due to reports of arrival of the fresh soybean crop in Madhya Pradesh, the largest grower.

Reports of arrivals of the new crop of soybean in Indore since four-five days are seen weighing on prices. The most active October contract was down 0.6% from previous close.

US officials cautioned over expectations of a substantial rise in Chinese soybean imports, citing the high stocks of the oilseed already bought, amid market questions over a slow pace of US export orders. The US Department of Agriculture Beijing bureau pegged at 92.5m tonnes soybean imports by China, the world top buyer, in 2017-18 on an October-to-September basis. While a rise of 1.5m tonnes year on year, and representing a record high, the forecast is well below the USDA official forecast of 94.0m tonnes.

Canola futures were little changed even as soybeans surged higher. The seven days forecast for the Canadian Prairies remains dry and the cool weather should give way to warmer temperatures and the rest of the week. Soybeans rose on dry weather in the U.S. Midwest that could prevent the crop from reaching its full potential. Also, a new soybean purchase by China underlined the good pace of export demand for American beans. Soymeal closed higher, but soy oil finished lower after being higher in the morning.

Frost damage to soybeans depends on the stage of the soybeans and how cold it gets and for how long. Frost is possible two days Wednesday morning in parts of Manitoba. Soybean growth stage is determined by examining the pods. It is all about the pods, so don’t get distracted by the condition of the leaves. The more advanced/mature the soybeans pods are, the less the potential yield loss.

Futures contracts of edible oils traded mixed, with soybean and mustard closing lower and crude palm oil and refined soyoil trading higher. Soybean settled 0.4% down on the National Commodity and Derivatives Exchange due to hope of a recovery in yields in key growing areas, following recent rains. Prices had risen earlier as an extended dry spell over most parts of the country in August had affected crops in major soybean growing areas. On the US exchange, soybean rose due to expectations of higher demand for soyoil in the US amid a hike in import duty on biodiesel from Argentina and Indonesia. Taking cues from soybean, mustard ended around 1% lower on the NCDEX due to tepid buying by oil millers. The most-active November contract of crude palm oil ended at 2,768 ringgits (41,667.84 rupees) per tonne, up 2.3% from the previous close.

Futures contracts of soybean rose on NCDEX as acreage under the oilseed fell across the country as of Thursday. Farmers have planted nearly 10.52 million ha of soybean till last week, as against 11.33 million ha sown during the same period a year ago. Prices rose also because of improved demand from oil miller due to positive crush margins. Demand for soyoil, a derivative of soybean, is rising in domestic markets due to higher consumption of the edible oil in the ongoing festival season. The most-active October contract of soybean on NCDEX was up 0.7% from the previous close.

The US Department of Agriculture has cut its estimate for India’s output of soybean in 2017-18 to 10 million tonne, down 13% from its earlier projection of 11.5 million tonne in July. The USDA arm has revised total oilseed production in the country down to 35.9 million tonne, 7% below the 38.6 million tonne projected earlier. The USDA branch sees imports of edible oil in the country rising by 10% on year to 16.6 million tonne. The import basket is expected to include 10 million tonne of palm oil, 4.2 million tonne of soybean oil, 2 million tonne of sunflower seed oil and remaining other oils.

Futures contracts of the edible oil basket, barring mustard, traded higher tracking gains in international markets. Soybean on National Commodity and Derivatives Exchange traded higher due to bargain buying after the prices fell over 6% in the past four trading sessions. Lower acreage of soybean further supported the prices on the domestic bourse.

Futures contracts of soybean extended gains on the CBOT due to a rise in imports from China. The US is the largest exporter of soybean in the world, while China is the largest importer. The shift in demand for soybean from Brazil to the US further supported prices. Brazilian traders are reluctant to sell soybean at the prevailing low prices. The most active November contract on the CBOT was at $9.4850 per bushel, up 0.3% from the previous close.