NEW DELHI (Commoditiescontrol) -
International Market
US soy complex ruled weak during the week ended May 11 with trade tensions with China sending market significantly lower.
Soybean futures suffered double digit losses after China, the biggest importer of US soybeans, predicted a decline in the oil seed import for the first time in 15 years.
According to the official website of Chinese Ministry of Agriculture and rural affairs, soybean imports are expected to fall 0.3 percent in 2018/19 to about 95.65 million metric tonnes, while the planting hectares of soybeans in China will be increased by 7.8 percent over 2017/18.
US traders view the projected decline of China's soybean imports as a result of trade tensions between the two countries.
Soybean futures saw sharp losses of 16 to 18 1/2 cents in the front months on Friday, as traders took money off the table going into the weekend.
July lost 3.23% since last Friday. Soy meal was $7.80/ton lower today, with front month soy oil up 19 points. Aggressive farmer selling in Brazil has been reported, with strong domestic prices recently.
The USDA updated their old crop US soybean cash average price to $9.35, with new crop ranging $8.75-$11.25.
May 18 Soybeans closed at $9.94 3/4, down 18 1/2 cents, Jul 18 Soybeans closed at $10.03 1/4, down 18 cents, Aug 18 Soybeans closed at $10.07 1/4, down 17 1/2 cents, Nov 18 Soybeans closed at $10.14 1/4, down 16 3/4 cents, May 18 Soybean Meal closed at $382.70, down $7.80, May 18 Soybean Oil closed at $31.17, up $0.19.
Domestic Recap
Spot soybean prices moved higher at the key Indore market during the week ended May 11 on the back of strong domestic demand for soybean meal.
Soybean priced Rs 75-100 higher at Rs 3,600-3.775/100kg, while soybean meal rose by Rs 800 at Rs 30,700 per tonne. On the other hand, refined soy oil remained flat at Rs 755/10kg.
Soybean plant rates in Madhya Pradesh stood at Rs 3,589-3,775/100kg versus 3,650-3,725 on last Friday while were at Rs 3,675-3,900 vs 3,675-3,830 in Maharashtra.
Demand in soybean meal is good in the recent weeks due to increased offtake from poultry feed industry, but export demand is poor, also revealed in April month export data.
The latest oilmeals export data released by the Solvent Extractors’ Association of India (SEA) showed that soybean meal shipment in April month dropped 63.65% at 45,209 tonnes as against 124,374 tonnes same period a year ago.
Indian soybean which had in disparity of $22 per tonne with Argentina on last Friday now widened to $39 per tonne making Indian produce uncompetitive.
A 3-4% correction in soybean price will make our soybean meal export cheaper or at least par with rival Argentina and may help to revive enquiries from overseas market, said a trader from Indore.
Soybean demand at present is mainly from crushers side as stockists are now on the sideline anticipating no major return ahead due to normal monsoon forecast followed by expectations of rise in acreage, said traders.
Meanwhile, the government of Madhya Pradesh has raised soybean production target at 55 lakh tonnes as against 53 lakh tonnes last year.
On futures, the benchmark June soybean was up Rs 20 at Rs 3,740/100kg as against Rs 3,720/100kg on the National Commodity & Derivatives Exchange Ltd (NCDEX).
(By Commoditiescontrol Bureau)
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