NEW DELHI (Commoditiescontrol) -
International Market
US soybean futures fell 0.5 percent during the week ended May 18, their third straight weekly loss. CBOT’s most-active July soybean delivery on Friday went up 3.5 cents, or 0.35 percent to close at USD 9.985 per bushel.
Strength in soybeans was tempered by a US Department of Agriculture announcement that unknown buyers cancelled deals to buy 949,000 tonnes of soybeans.
The USDA reported export sales cancelations of 829,000 MT for old crop soybeans and 120,000 MT for new crop. It also reported 56,000 MT in sales for 17/18 and 112,000 MT for 18/19 all for unknown destinations through their daily reporting system. Spill over from corn and wheat helped to offset that news.
Aug 18 soybeans closed at USD 10.02 1/2, up 3 3/4 cents. Jul 18 soybean meal settled at USD 376.30, up USD 1.20 while Jul 18 soybean oil ended at USD 30.98, up USD 0.04.
Domestic Market Recap
Spot soybean prices declined at major markets in the country during the week ended May 18 due to lacklustre crushers demand.
Spot soybean ended the week lower at Rs 3,500-3,650/100kg vs Rs 3,600-3,775/100kg at the Indore market. Similarly, refined soy oil ruled weak by Rs 6 at Rs 754/10kg.
On the other hand, soybean meal traded up by Rs 500 at Rs 30,800 per tonne.
Soybean plant rates in Madhya Pradesh quoted lower at Rs 3,650-3,750/100kg versus Rs 3,575-3,750/100kg, while were priced weak at Rs 3,700-3,870/100kg versus 3,675-3,900 in Maharashtra.
Indian soybean which had in disparity of USD 39 per tonne with Argentina on last Friday now widened to USD 40 per tonne making Indian produce uncompetitive. India soybean meal tentatively CIF Rotterdam priced at USD 478 per tonne as compared with Argentina of USD 438. While Soybean crush disparity stood at Rs 770 (-ve) per tonne.
Although crush disparity is negative, but tight availability of soybean forced crushers to procure soybean to meet their requirements.
Export demand for soybean meal is not encouraging, but domestic demand is expected to increase with monsoon arrivals from next month onwards. Consumption of soybean meal increases in poultry industry due to rise in demand for poultry products during the monsoon season.
Moreover, Iran's rekindling interest in soymeal from India is expected to buoy overall exports to around 100,000 tonne in May, over 10 percent higher than the same period last year, a senior official with the Soybean Processors Association of India said.
"Iran is re-emerging as the new big buyer. Earlier, demand from Iran for our soymeal was insignificant. Now Iran has started showing interest in us," he said.
Shipments of around 40,000 tonnes soymeal from India are scheduled to reach Iranian ports this month, the official said.
All India daily soybean supply was at around 1.15 lakh bags (approx 95kg each).
According to balance sheet drawn by Soybean Processors Association of India (SOPA), soybean ending stock will be just 1 lakh tonne by season end i.e. on September 31.
The total availability of soybean during the season 2017-18 (Oct-Sept) was estimated at 96.50 lakh tonnes (13 lakh tonne as opening stocks and 83.50 as production), while disposal was estimated at 95.50 lakh tonnes (retained for sowing 12 lakh tonnes, 1.50 as direct consumption, 2 lakh tonnes in export and rest 80 lakh tonnes used from crushing), leaving ending stock at only 1 lakh tonne.
On futures, soybean June futures moved up by Rs 48 at Rs 3,782/100kg on the National Commodity & Derivatives Exchange Ltd (NCDEX).
(By Commoditiescontrol Bureau)
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