CBOT Soybean Prices Strengthened by 2.1% Last Week

Soybean. During the period under review (April 26 – May 03), CBOT soybean prices strengthened by 2.1%, reports UkrAgroConsult.

The reporting week was marked by the volatility of CBOT soybean futures, amid the talks between the USA and China on trade relations. Chinese importers still do not contract the US soybean, switching to South American commodity.

Price growth in soybean meal market (+7% over the week) provided an essential support to soybean quotations, given the declining soybean production prospects in Argentina. Farmers in the country reported a reduction in soybean productivity during the harvesting campaign to 2.4 MT/ha, or -25% compared to last year. As harvesting progresses, soybean productivity may drop to 2 MT/ha. Argentinean farmers gathered soybean from 54% of the intended area. Supplies of US soybean in direction of Argentina continued to increase.

Moreover, report on farmers sowing intentions in Canada for the 2018 crop, where canola sowing area was below the market expectations, appeared to be a growth driver.

Soybean oil. Over the period under review, CBOT soybean oil futures fell by 1.39% to 30.58 cents per pound, following palm oil market trends, as well as due to information on the US stocks growth, amid active soybean crushing.

Market participants were concerned about the growth of palm oil production in Indonesia and Malaysia, amid low export demand. The survey company AmSpec reported that during April 01-30, palm oil exports from Malaysia decreased by 6%, compared to the same period in March, reaching 1.3 MMT.

More information on export trade of oilseed crops and vegetable oils in the countries of Black Sea Region is available to subscribers for weekly market report “Black Sea Vegoils” by UkrAgroConsult.

Further prospects of the Black Sea oilseeds/vegoils market will be discussed at the VI International Conference Black Sea Oil Trade, which will take place on September 20, 2018 in Hilton hotel, Kiev, Ukraine.

This article provided by NewsEdge.