Soybean futures rose 6.6% on data from the US sowing area report
Soybean futures on the Chicago SWOT reacted sharply yesterday to data from the USDA reports on quarterly stocks and sowing areas, which were lower than traders expected.
July futures rose 6.6% to 5 532.8/ton, and November futures – 6.6% to.514/ton, adding 11% in price in two weeks and recouping a 15.5% drop in the first half of June.
The USDA experts left the estimate of soybean sowing areas in the United States at the level of the March forecast – 87.6 million acres, which is 5% higher than last year, but lower than the average analyst estimate of 89 million acres. Traders expected farmers to increase the area under soybeans to 90 million acres or more amid high prices and demand for soybeans, as well as favorable conditions during sowing.
The largest area of soybean sowing was expanded by the states of Nebraska, South Dakota, Kansas and Ohio, which suffered from drought in the spring and are now suffering from heat at 32-38 OhHowever, the increase in area may be offset by a drop in yield, in which case the gross harvest will be lower than the projected 118 million tons.
Soybean stocks in the United States as of June 1 decreased by 44% compared to the corresponding indicator last year to 20.87 million tons, which is 2.5% lower than the average analyst estimate and increases pressure on stock quotes.
On the Chicago SWOT, December soybean oil futures rose 1.7% to.1,375 / ton, adding 9% in price from Monday. While August soybean oil futures on the stock exchange in China rose by 3.3% to a two-week high of 1 1,303/ton.
In Ukraine, purchase prices for soybeans are falling due to a decrease in demand from processors who cannot profitably sell soybean oil, meal and cake. Exporters lowered prices for non – GMO soybeans from 7 700-720/ton to.670-680/ton with delivery to the border, and processors for GMO soybeans-from UAH 18,000-18,300/ton to UAH 17,300-17,600/ton with delivery to the plant.
The rapid increase in rapeseed and rapeseed prices caused by the drought in Canada will support soybean prices and stop them from falling by the time of active rapeseed harvesting in the EU and Ukraine.
