NEW DELHI (Commoditiescontrol) -
International Market Recap
US soybean futures rebounded on the last trading sesion of the week as traders scrambled to cover short positions before the weekend, but the rebound was not enough to completely recover from a string of trade war fear-fueled losses that have now stretched into a fourth consecutive week.
The soybean nearby July futures closed the week down 1.2 percent from the previous week/since last Friday.
On Friday, July soybean contracts rose 1.6 percent or 14 cents to USD 8.94 1/2 a bushel at the Chicago Board of Trade (CBOT). Similarly, July soybean meal closed at USD 339.10, up USD 7.30, while July soybean oil at USD 29.21, USD 0.02 in the green.
Analysts say a number of factors have helped spark some renewed buying interest on Friday. On the one hand, the Chinese tariffs may already be factored into prices. On the other, Brazilian soybean prices have surged as Chinese importers seek out its oilseeds instead. Analysts say that could reroute other buyers back to the US.
Soybean prices fell over 15 percent from late May, when concerns about trade with China intensified. China last week said it planned to start levying duties on American soybean imports in July.
Nearby CBOT soybean futures fell to a 9-1/2-year low earlier this week, hit by favourable weather along with trade war fears.
Next week, traders say they are planning to closely watch the acreage numbers in the anticipated US acreage and stocks estimates from the US Department of Agriculture, set to be released on June 29.
The market’s focus will be on whether USDA will report a bump up in soybean acres – as well as whether the winter wheat acres will remain as high as the agency has suggested in the past.
Domestic Market Recap
Spot soybean ruled mostly steady at major markets in the country during the week ended June 22 due to limited buying support from crushers.
Soybean at the Indore market was ramained mostly steady at Rs 3,350-3,475/100kg. However, refined soy oil moved higher by Rs 15 to Rs 750/10kg as the Centre has raised import duty on crude soybean oil from 30 percent to 35 percent, while that on refined soybean oil from 35 percent to 45 percent to curb import and promote farmers to grow more oilseed and provide them better remuneration for their crops.
While soybean meal declined by Rs 1,300 to Rs 28,200 per tonne.
The key Indore market remained closed for three days, June 21-23 as traders in Madhya Pradesh's agriculture markets were on a three-day strike to protest against the alleged complications of the Union government's National Agriculture Market (eNAM) platform.
As far as crushers' demand for soybean is concerned it is not robust at present due to poor enquiries in soybean meal. However, sharp losses in soybean are unlikely from the current level due to thin stock left with farmers, stockists and crushers.
Moreover, slow pace of sowing in the wake of weakening of monsoon has also raised concern over production.
As per the latest Agriculture Ministry data, the area under soybean was at 2.12 lakh hectare as on June 22, down 58.8 percent from 5.14 lakh hectare during the same period a year ago.
Meanwhile, the Madhya Pradesh government has advised farmers not to sow soybean till the rainfall increases to over the 4-mm level, as the southwest monsoon rains are late in the state and the pre-monsoon showers are scanty. A crucial kharif oilseed, soybean is sown in Jun-Jul and harvested in Sept-Oct. The state farm department has estimated production at 5.5 million tonne this year against 5.3 million tonne in 2017-18.
Soybean July futures dropped by Rs 45 to Rs 3,430/100kg on the National Commodity & Derivatives Exchange Ltd (NCDEX).
(By Commoditiescontrol Bureau)
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