Commodity price update: Soybean prices are expected to rise
Commodity known as Soy declined as investors booked profits. Although strong demand from oil mills should help keep prices stable. The USDA’s December update indicated no changes to India’s output. Which was 11 mt for the 2021–22 season and up 32% from the previous year. The USDA estimates that soy production will grow by 22% this season or 2.2%. Bringing the total amount produced in 2021–22 to 75 lakh tonnes. According to a news statement from SOPA, during the past two months, India’s soy exports decreased by 20%. Year over year to around 3.28 lakh tonnes. While arrivals increased by 14% to 41 lakh tonnes. Senior government sources predict that China will let the entry of Indian soybeans. This will happen after allowing the import of non-basmati rice and raw sugar.
On Wednesday, the price of commodities such as cocoa and arabica coffee increased along with the price of raw sugar. This is because the dollar lost some ground after a recent strong climb. The price of October raw sugar increased 0.4% to 18.45 cents per lb. Dealers highlighted that the dollar had marginally retreated. Versus a basket of currencies on Wednesday DXY following a 1.5% increase on Tuesday. But the market was kept in check. This was thanks to Centre-South Brazil’s stronger-than-anticipated sugar production in the second part of August. The price of a tonne of October white sugar (LSUc1), which expires on Thursday, dropped 0.7% to $602 and further declined from the session’s 10-year high of $620.30. Dealers claimed that limited supplies, depleted stocks in certain major importing nations, poor exports from India, and rising refining prices were supporting the whites market. As of September 13, there was 320,400 tonnes or 6,408 lots of open interest in the October contract.
More About said commodities
After hot and dry weather reduced harvest potential, U.S. maize and soybean supplies will drop to multi-year lows, the U.S. Department of Agriculture predicted on Monday. The market was taken aback by the agency’s revised forecast of the U.S. soybean crop because it contrasted with some encouraging field reports in recent weeks. According to consultant Agritel, “the markets continued to absorb (the) USDA report, with some stability in futures.” It added in a note that “rising prices mixed with a slowing economy has led to fears of a drop in global demand.” Tuesday’s August U.S. inflation data fueled speculation that interest rates would rise, which may slow down the world economy and reduce demand for commodities. According to the International Energy Agency (IEA), as the global economic recession worsens, growth in oil demand is expected to stall in the fourth quarter.
According to a Western official on Tuesday, the UN is attempting to mediate the restart of Russian ammonia exports through Ukraine, which might stabilize a grain corridor agreement for Ukraine that has come under fire from Russia. A day before a potential labor stoppage, several U.S. railways will begin to halt crop shipments on Thursday, according to sources at two-grain cooperatives and an agricultural association. Grain markets are also anticipating Statistics Canada’s projections of crop production later on Wednesday.
