NEW DELHI (Commoditiescontrol) -
International Market Recap
US soybean futures rose for a second straight session on Friday on short-covering and follow-through buying after a government report the prior day forecast a smaller-than-expected US harvest.
Chicago Board of Trade (CBOT) November soybeans rose 9-1/4 cents to $8.67-1/2 a bushel, holding chart support at its 50-day moving average but ending down 0.2 percent on the week.
Soybean traders are monitoring trade tensions between the United States and China, which cancelled some of its US soybean purchases last week, according to USDA data released on Friday.
China brought 8.01 million tonnes of the oilseed in September, down from 9.15 million tonnes in August and below the 8.11 million tonnes in September 2017, according to Reuters calculations based on Chinese customs data.
A day ago on Thursday, the US Agriculture Department surprisingly trimmed its forecasts for domestic soybean production, with the soy cut stemming from a reduction in acres.
Soybean production was seen falling from the government’s September estimate due to a decrease in harvested acres in key states such as Illinois and Minnesota.
Despite the cuts, the US soybean crop was still projected as the biggest ever. Soybean production was pegged at 4.690 billion bushels, with yields averaging a record 53.1 bushels per acre, the government said in its monthly supply and demand report.
In September, USDA had forecast a corn crop of 14.827 billion bushels and a soybean crop of 4.693 billion bushels.
USDA estimated harvested soybean acres at 88.348 million.
USDA raised soybean ending stocks to 885 million bushels, lower than analysts were expecting. If realized, the soybean ending stocks would be the biggest on record.
Domestic Soybean Market Recap
Soybean prices at the benchmark Indore market remained mostly steady during the week ended October 12. The prices were seen in the range of Rs 2,900-3,050 amid increasing supply of new crop in the markets.
The average arrival of new soybean crop is said to be at around 5,50,000 bags per day. It will speed up to an average of 7,00,000 bags per day ahead as the harvest is now in full flow amid clear weather conditions.
The crop is said to be in very good condition but the new seed still has higher moisture level of 12-14 percent as compared to the ideal 10 percent.
Meanwihile, the Soybean Processors Association of India (SOPA) has come out with first survey for soybean crop for 2018 and pegged country’s crop over 37% higher at 114.83 lakh tonnes versus 83.56 lakh tonnes.
Acreage under soybean increased this kharif season by 6.7 percent at 108.40 lakh hectares as against 101.56 lakh hectare a year ago.
Higher area and favourable weather resulted in better yield of 1059 kilogram per hectares (ha) versus 823 hectare.
On NCDEX, soybean November futures remained almost unchanged at Rs 3,237/100kg as against Rs 3,246/100kg on last Friday, October 5.
(By Commoditiescontrol Bureau)
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