Situation on the world markets of oilseeds and products of their processing with at 13.03.17 17.03.17

The world soybean market. The nearest future may from 13 to 17 March, strengthened by 1.38 USD to 367,43 USD. Export sales of old crop soybeans last week amounted to 471,572 thousand tons of new crop 225,788 thousand t. the Results of the week were higher than the results of a week earlier and more than expected by the market, which a little supported quotes.

The reason for the significant growth of the market of soybeans yet. The improvement in export sales may not significantly "expand the market" as factors of harvesting in Argentina and increasingly rising forecasts of world soybean production have a significant pressure on prices. Estimates of world production and supply of soybeans for the reporting week increased and world grain Council (following USDA). In such circumstances, the soybean still cannot find a foothold and gradually decreases, which was expected since the end of last year.

In anticipation of the 31 March report on the status of soybean crops in the U.S. the market continues to speculate. Most analysts agree that the area sown under soybean in 2017 will be increased in the country until 87-88,8 million acres. The overall decline in world prices of almost all agricultural commodities has led to a reduction of favorable conditions in the financial sector, and for the cultivation of soybean required much less investment and working capital, when compared with corn or cotton. So, average production costs of farmers in the country on 1 ha of soybean production was $ 171 million, which was much below the cost of corn (334USD) or cotton (497USD). The meat market can continue to stimulate soy budkompleks many countries. Lower feed prices would further stimulate a further increase in soybean production. It is also worth noting that many analysts expect high price volatility in commodity markets in 2017 in connection with the renegotiation of trade agreements between the United States and a number of countries, which may interrupt the commercial activity of the country on the world market, and also have a negative impact on the agriculture of the country as a whole.

Rapeseed as of the reporting week declined (-2,32 USD) to 437,54 USD. Later futures were down an average of 4.43 from USD to 5.74 USD.

On the Malaysian stock exchange in Kuala Lumpur the nearest futures contract for palm oil for the reporting week fell by 4.5 USD to USD 667,25, under pressure from the news that the expectation of the negative impact of El niño on the production of wheat, rice, palm oil and oil crops in Asian countries is exaggerated.

Export prices (FOB) for oilseeds

Export prices of Argentine soybeans for the week decreased by 8.0 USD to 374USD. U.S. soybeans fell 1 379,0 USD to USD. The gap between us and Argentine soybeans this week was 5.0 USD.