Soybean

Recent rainfall in South Dakota is giving crops a major boost this week. The Crop Progress report issued by USDA-NASS shows soybean crops in the state had eight-point gains. Crop is now rated 42% good to excellent. But, gains discovered in South Dakota were lost in Illinois. Illinois soybean crop also declined. This week, 60% is good to excellent, down three points. Overall, the national soybean rating gained a point to 60% good-excellent.

Futures contracts of soybean on the NCDEX were up due to concerns over a drop in output after below-normal rainfall in parts of Madhya Pradesh. The most active October contract on NCDEX was up 0.2% from the previous close. Madhya Pradesh, the country largest soybean producer, has so far received 492.4 mm rainfall, 22% below normal. There are also concerns of crop damage due to insect attacks in some parts of the state. Prices also rose taking cues from the benchmark contracts on the CBOT, which were up due to stronger-than-expected weekly data on US soybean exports.

Soybean futures contracts on the CBOT were up due to less-than-expected rainfall in some parts of Illinois and Iowa, the largest soybean producing states of the US Midwest region. Contracts gained also due to stronger-than-expected weekly US soybean exports data. The quantum of soybean crushed in the US in July was higher on month, which supported the prices of the oilseed on the CBOT. The most-active November CBOT soybean contract was up 0.2% from the previous close.

Soybean futures rose on higher-than-expected export sales and renewed concerns about a rain shortage. Soybean futures for September rose 0.9% to $9.30 1/4 a bushel at the Chicago Board of Trade.

U.S. soybean export sales have been languishing for much of the summer following a record-shattering Brazilian crop, but demand for U.S. shipments is gathering pace, led by renewed demand from top importer China. Export sales last week handily topped trade expectations, surging to the second-highest level so far this year, and sales to China exceeded the previous three weeks combined. Chinese importers are now turning to U.S. shipments that are priced at least $12 per ton below cargoes loaded at Brazil’s Paranagua port for September through November shipment.

Soybean crushing in Russia is on the rise in the latter half of the 2016/17 season. Soybean oil production gained almost 2% in June against May and reached 63.3 KMT. soybean oil output reached 547.6 KMT in the period under review that is 3.6% more than at the same time in the past 2015/16 season (528.5 KMT). Soybean oil accounts for over 11% of total vegoil production.

Prices of soybean in the key wholesale market of Indore, Madhya Pradesh rose because of concerns over crop damage due to pest attack. Incidents of white grub, semi-looper caterpillar, girdle beetle and white fly attacks have been reported in key growing areas of Madhya Pradesh and Maharashtra.

Futures contracts of soybean rose on the NCDEX due to reports of insect attacks on the crop in many parts of Madhya Pradesh. Incidents of white grub, semi-looper caterpillar, girdle beetle and white fly attacks have been reported in key growing areas of Madhya Pradesh and Maharashtra. Yield may be less this year as a result of these attacks. Most-active October contract on the NCDEX traded at up 0.2% from the previous close.

The National Commodity and Derivatives Exchange marked 890 tonne soybean, 840 tonne of castor and 720 tonne of wheat for staggered delivery in the August contract. The exchange also marked 20 tonne mustard oil cake and 20 tonne coriander for delivery.

Futures contracts in the edible oil basket traded mixed, with soybean and mustard rising and crude palm oil and refined soyoil lower on domestic exchanges. Paring losses of the previous session, soybean futures on National Commodity and Derivatives Exchange ended 1.2% higher tracking gains in Chicago Board of Trade.

Prices of soybean in the key wholesale market of Indore rose as the government raised import duty on crude soy oil to 17.5% from 12.5%. A higher duty may discourage imports. Firm demand for soymeal and soy oil is seen pushing prices higher. Arrivals in Indore were steady.

The CME Group farm markets closed weaker, with favorable crop-weather providing most of the pressure. September soybean futures closed 11¢ lower at $9.21¾. November soybean futures closed 14¢ lower at $9.24¼.

A record number of soybean acres planted this spring is projected to produce a record soybean harvest this fall despite challenging growing conditions across large sections of the Midwest. U.S. soybean production was pegged at 4.38 billion bushels, an increase of 2 percent from last year record setting output of 4.3 billion bushels. Harvested acres were projected at 88.7 million acres, up from 83.5 million in 2016. A record number of soybean acres planted this spring is projected to produce a record soybean harvest this fall despite challenging growing conditions across large sections of the Midwest. The large projected crop could shrink due to worsening drought conditions in key soybean growing regions, including Iowa and North and South Dakota. Iowa soybean harvest is projected at 557 million bushels on a per-acre average of 56 bushels. This is down from last year production of 572 million bushels and a 60.5 bushel-per-acre average. Crop conditions have deteriorated in many locations since the USDA completed its yield assessment.

Paring weakness from the previous session, soybean contracts on the National Commodity & Derivatives Exchange traded higher bolstered by firm buying from crushers, backed by upbeat soymeal exports. Gains in the bellwether soybean contract on the Chicago Board of Trade also propped up the prices on the Indian exchange. Taking cues from soybean, refined soyoil contracts on the NCDEX and crude palm oil on the MCX traded higher owing to rise in demand in wholesale markets and talks of a duty hike on imports of palm oils. Soybean traded higher on the US exchange following weather vagaries in the US.

Prices of soybean rose in the key wholesale market of Indore due to strong demand from oil millers. Firm exports of soymeal have also been supportive for soybean prices. In July, India soymeal exports rose over 150% on year to 30,678 tonne.

Futures contracts of soybean rose nearly 1% on NCDEX due to slow progress of kharif sowing in Madhya Pradesh, the largest grower of the oilseed. The most-active October contract of soybean on the NCDEX was at 3,128 rupees per 100 kg, up 0.7% from the previous close. So far, this kharif season, farmers have planted soybean across 4.5 million ha in Madhya Pradesh, down 12.5% from the previous year, according to data from the farm ministry. Rise in exports of soymeal, a derivative of soybean, by 150% on year in July also supported prices.

Futures contracts of soybean traded higher on CBOT following weather vagaries in the US. The most active November contract on CBOT was at $9.7575 per bushel, up 0.3% from the previous close.

Soybean yield forecast of 49.4 bushels per acre is 1.4 bushels above last month but 2.7 below last year’s record. With higher production and lower beginning stocks, soybean supplies for 2017/18 are projected at 4,777 million bushels, up 2 percent from last month. U.S. soybean exports are raised 75 million bushels to 2,225 million on increased supplies and lower prices. Crush is reduced on lower global soybean meal import demand. Soybean ending stocks are projected at 475 million bushels, up 15 million from last month.The U.S. season-average soybean price for 2017/18 is forecast at $8.45 to $10.15 per bushel, down 10 cents at the midpoint. The soybean meal price forecast of $295 to $335 per short ton is down $5.00 at the midpoint. The soybean oil price is forecast at 31 to 35 cents per pound, up 1 cent on both ends of the range.

Futures contracts of crude palm oil traded higher on the Bursa Malaysia Derivatives because of weakness in the ringgit against the dollar and gains in the soyoil contracts on the CBOT. The most-active October palm oil contract was at 2,640 ringgits (39,259 rupees) per tonne, up 11 ringgits from the previous close, while the most-active September soyoil contract on CBOT was up 0.3% at 33.98 cents per pound. Soybean futures on the CBOT are trading firm over the last few days amid concerns over forecast of drier weather in the US Midwest just when the plants are in crucial pod-setting stage.

Futures contracts of soybean were marginally up on CBOT due to dry weather conditions in some parts of Illinois and Iowa, the largest soybean producing states in the US Midwest. The good-to-excellent rating for the oilseed in the two states has declined in the last week. The most-active November contract on CBOT was at $9.7575 per bushel, up 0.3% from the previous close.