Situation on the world markets of oilseeds and products of their processing with 24.07.17 for 28.07.17

The world soybean market. The nearest future from 24 to 28 July, dropped to USD 367,71, however, since Monday started strengthening and as 02.08.17 made 354,67 USD. Export sales of old crop soybeans for the week amounted to 303,368 kt, and the new – 531,844 thousand tons (against the market estimates for the new crop in the range of 300-1 000 thousand tonnes 100-300 tonnes for old crop). Thus, the total volume of sales was 39.2% higher than last year. Sales of soybean meal totaled 61,855 thousand tons (in December, 50-225 thousand tons) and soybean oil – 14,882 thousand tons.

Last week at the world soybean market continued to influence macro-economic factors high carryover stocks of soybeans in the world, quite a large acreage of culture. However, it is worth noting that 01.08.17 USDA made another statement in which the predicted values of soybean crop in the current season have been lowered (the largest downward correction in recent times), which naturally affected the dynamics of quotations, which were gradually strengthened. Thus, the share of crops in good or excellent condition according to experts was reduced from 61% a week earlier to 57%. On average, over the last few seasons for the period of time the condition of crops in good to excellent condition has traditionally accounted for about 61% and a similar reduction in the estimates indicates an alarming situation and, of course, the market reacted. However, experts note that the possible precipitation in August could significantly change the situation and increase the expected yield.

Additional factors that in the first week of August began to support the steel market news relatively lower forecast of soybean crop in 2017/18 MG with 348 million tonnes to 345 million tonnes (despite the increase in acreage), primarily due to unfavorable weather conditions for the ripening of crops in many countries. In turn, beginning stocks of soybeans (according to the World Council op grain) reached 43.5 million tons (a record figure), mainly due to unsold vintage USA and Brazil. However, the hope for rising prices to give estimates of the growth in world consumption of soybeans (recall that soybeans this season, the most promising crop due to its wide applications in the feed manufacturing and growth performance of livestock in many countries of the world) to 350 million tons (compared to 339 million tons in 2016/17 MG). It is expected that the main consumer, as always, will be China.

Rape in the reporting week continued last weeks simple unlike soy. Thus, the growth for the nearest future is made of 6.51 USD to 432,52 USD.

On the Malaysian stock exchange in Kuala Lumpur the nearest futures contract for palm oil for the reporting week cutting was strengthened by 13.25 USD to 622,75 USD.