Soybean

A delegation of commodity importers from China, the world top buyer of soybeans, signed agreements to buy 12.53 million tonnes of the US crop, the second largest deal between the two countries. The previous record was a 13.18 million-tonne agreement signed in 2015. The non-binding deal was signed at a ceremony in Des Moines, Iowa. The US Agriculture Department expects China to import 93 million tonnes of soybeans in the 2017/18 marketing year, up from 89 million in 2016/17. Total US soybean exports are pegged at 58.51 million tonnes, up from 55.79 million tonnes a year earlier. China has become a strong importer of soybeans due to rising consumption of both poultry and livestock.

India soybean acreage is likely to fall by around 10% in the ongoing kharif season as farmers may have switched to more profitable crops due to poor realisation from the oilseed, and on weather vagaries. Around 8-10% shift in sowing of soybean is expected this year. Farmers are not much interested in growing soybean and they are shifting mostly to cotton. For the 2017-18 (Jul-Jun), the minimum support price for medium staple cotton is 4,020 rupees per 100 kg and for long staple cotton at 4,320 rupees, both up 160 rupees on year, while that for soybean is 3,050 rupees.

The rise in prices was also because of lower arrivals, as the ongoing period is a lean season for soybean arrivals.

In a move to quell simmering anger among farmers after last month violent protest, Madhya Pradesh chief minister Shivraj Singh Chouhan announced plans to procure soybean from farmers at minimum support price ( MSP ). Govt have been procuring moong (green gram), urad (black gram) and arhar (pigeon pea) from farmers at MSP. Instead attempts should be made to ensure that the farmers get proper price for their produce. The state government move to procure soybean at MSP is an attempt to reach out to large number of farmers in Malwa region, the hub of soybean cultivation in the country.

The US Department of Agriculture Brasilia post has estimated Brazil soybean output at 105 million tonne in 2017-18 (Mar-Feb), down around 8% from 114 million tonne last year. The fall in the soybean production despite record area under the crop is primarily due to poor yields in 2017-18. Sowing of soybean in 2017-18 is seen at a record 34.4 million ha and it is over 1% higher than last year level in the country. The post forecasts soybean exports for 2017-18 at 62 million tonne, down about 3% compared to the previous year due to lower exportable supplies of the oilseed because of weak output and higher domestic consumption.

After hitting a four-month high of $10.3250 per bushel in electronic trade on the CBOT, soybean contracts were down because of profit booking by investors. The most active August contract on the CBOT was at $10.2275 per bushel, down 0.6% from previouse close. Unexpected overnight rains across parts of mid-west US as well as over the Great Plains, coupled with forecast of more showers in the coming week led investors to book profits.

Pakistani importers have recently purchased about 180,000 tonnes of soybeans expected to be sourced optionally from the United States or Brazil. The soybeans are for shipment in April and May 2018. The purchases were made in three 60,000 tonne consignments from exporters in the United States at premiums over Chicago soybean futures.

With record acreage planted, U.S. soybean growers hope to expand exports to China this year as Chinese demand continues to increase, but competition from Brazil and concerns about U.S. genetically modified crops may dampen Chinese enthusiasm. China is likely to commit to a big purchase of U.S. soybeans when a delegation from the Chinese Ministry of Commerce visits Des Moines, Iowa, on July 13.

Soyabean prices strong in Nagpur on increased demand from local crushing plants amid weak supply from producing regions. Notable hike in other soyabean mandis in the region because of weak monsoon and reported demand from South-based plants also jacked up prices.

Soybean prices rose in Indore, Madhya Pradesh, as area under the oilseed fell in the state. Prices of the oilseed also rose due to a surge in soymeal exports from the country. Export of soymeal rose 56.1% on year to 64,000 tonne in June.

Futures contracts of soybean fell nearly 3% on the NCDEX due to profit booking, after prices rose to a near three-month high on previous close.

Soybean contracts hit a four-month high of $10.2450 per bushel in electronic trade on the CBOT because of dry weather conditions in the US, which raised concerns over output. The most-active August contract on the CBOT traded at $10.2025 per bushel, up 1.9% from the previous close.

Futures contracts of soybean rose over 2% on NCDEX due to a surge in soymeal exports from the country. The most-active August soybean contract was up 2.6% from the previous close. Export of soymeal rose 56.1% on year to 64,000 tonne in June. In Oct-Jun, India exported 1.52 million tonne of soymeal, up from 319,000 tonne a year ago.

Supply of soybean seeds across the country rose to 6.9 million tonne during Oct-Jun from 5.1 million tonne in the year-ago period due to a bumper crop in 2016-17 (Jul-Jun). As of June-end, soybean inventories with farmers were at 3.6 million tonne, over three times the amount a year ago. In June, arrivals of the oilseed were at 400,000 tonne, lower than 425,000 tonne in the corresponding period last year, while 550,000 tonne of the commodity was crushed, higher than 450,000 tonne a year ago. Stocks with traders and plant owners were at 109,000 tonne, down from 257,000 tonne a year ago. Higher exports of soymeal, a derivative of soybean, resulted in lower stocks with traders. For Oct-Jun, soymeal exports were pegged at 1.5 million tonne, way higher than nearly 300,000 tonne exported a year ago, the data showed. In June, exports were at 64,000 tonne, sharply higher than 18,000 tonne a year ago.

Prices of soybean in Indore rise by nearly 50 rupees as supplies of the oilseed declined and because soymeal quoted higher. Arrivals in Indore 80 tonne vs 100 tonne.

Futures contracts of soybean on the CBOT traded higher due to concerns over poor growth of the sown crop amid dry weather in the US. The most active August contract on the CBOT traded at $9.89 per bushel, up 0.3% from the previous close. Futures of the oilseed had declined in the electronic trade because of profit booking by investors, after prices hit a three-month high, and due to a firm dollar against the euro.

US soybean emergence 98%, blooming 18%, crop good to excellent 64%.

CBOT soybean futures ease as traders book profits.

Indore soybean prices likely to rise in near term.

Indore soybean up on hopes of veg oil import duty hike.