Situation on the world markets of oilseeds and products of their processing with 23.01.17 for 27.01.17

The world soybean market. The nearest March futures for soybeans after a fairly strong growth showed a decline of 5.79 USD to 385,53 USD. The main pressure on the market by the expectation of the South American harvest at competitive prices to the world market and fears about the future of American-Chinese relations, because China can go for the cheaper soy. Additionally, the market reacted to the results of export sales as a signal of reduced demand for U.S. soy. Thus, the results of last week's export sales culture was 536,535 kt, when 126,0 thousand tons of harvest 2017/18 MG. Overall, sales of the week were in the range of expectations, but were 36.4% lower than the previous week. In turn, the sale of the meal, while fairly stable and even exceeded the level of the previous week, reaching 276,8 thousand tons (+37.8% versus last year and +3% compared to the previous week).

American farmers are quite active export policy, trying as actively as possible to sell the harvest, fearing a decline in prices since the release of South American soybeans on the world market. The majority of farmers to carry out sowing of grain crops in the corn belt this season, has refocused the structure of sowing with a 50/50 (corn/soy) to 60/40 in favor of soybeans, rightly noting stronger demand for culture from China.

It should be noted that the rains, which fell in Brazil, had a negative impact on the harvesting and also on quality of the harvested crop. So, because of the rains, soybean yields declined by 54.8 per Bush./acre to 51.3 Bush./acre., and the cleaning area was only 11% against target of 15%. However, by the end of the week the rain had a little abated and the situation improved.

Rape in the reporting week has strengthened even by 9.49 USD to 458,09 USD. Strengthened rape more out of inertia, not paying attention to the neighboring soybean market, who last week declined slightly.

On the Malaysian stock exchange in Kuala Lumpur the nearest futures contract for palm oil for the reporting week grew by 4.25 USD to 732,25 USD. However, it should be noted that the later the futures in the reporting week showed a decrease.

Export prices (FOB) for oilseeds

 

Export prices of Argentine soybeans for the week decreased (-6,0 398,0 USD to USD). U.S. soybeans fell by 9.0 USD to USD 401,0. The gap between us and Argentine soybeans this week was 3.0 USD.