Soybean

Soybean traded firm as good domestic demand amidst slight firmness in International markets pulled up prices moderately. Traders expect prices have fallen a lot and some short term recovery not ruled out this week. 

Latest WASDE reports indicate global oilseed production for 2014/15 is projected at a record 532.1 million tons, down slightly from last month. Global soybean production is raised 0.7 million tons to a record 315.1 million. Prospects for the Argentina soybean crop have improved with ample moisture and mild temperatures. As a result, the crop is projected at a record 56.0 million tons, up 1.0 million. Soybean production is also raised for China, Russia, and Ukraine. Soybean production for Brazil is projected at 94.5 million tons, down 1.0 million on lower yields reflecting the impact of limited rainfall in eastern growing areas.  

WASDE Report OILSEEDS: U.S. soybean supplies are increased 10 million bushels to 4,086 million on higher projected imports. Exports for 2014/15 are projected at 1,790 million bushels, up 20 million. Soybean crush is raised 15 million bushels to 1,795 million on increased domestic soybean meal disappearance. Soybean oil production gains from additional crush are mostly offset with a lower extraction rate. With increased production and reduced exports, soybean oil ending stocks are projected at 1.505 billion pounds, up 75 million. Soybean ending stocks are projected at 385 million bushels, down 25 million from last month.

 As per IGC, soybean output may rise by 40 lakh tons this year. It has estimated 31.20 crore tons output globally in 2014-15. Previously, the IGC had estimated 30.8 crore tons in its projection released in November.  IGC has estimated 117 lakh tons of soybeans in India for 2014-15, while it was 120 lakh tons last year. However, some organizations differ the estimate. As per the Soybean Processors Association of India report released in November, soybean output may be around 105 lakh tons, while Central Organization for Oil Industry and Trade (COIT) has predicted 91 lakh tons. The COIT has estimated 13 lakh tons less output in Maharashtra as compared to last year. As per COIT, soybean output was 38 lakh tons in the state last year, while it has been recorded only 25 lakh tons as of now.

China, the largest consumer has reportedly scraped orders of soybeans around 1.20 lakh tons during the US marketing seasons started with September 1, showing signs of weak demand.