Soybeans recovery in exports
Soybeans are trying to hang on to double digit gains, following a USDA projection of 2017 crop endingstocks that fell by 5 million bushels, surprising the trade.
Soybeans rallied before the report, after USDA announced new purchases, including 10.25 million bushels of old crop to Argentina and 9.3 million bushels of new crop to China and unknown destinations. The market made new highs after the April supply and demand report was released, but quickly ran into profit taking before firming again.
USDA said stronger crush would offset a decrease in feed and residual usage, causing the small reduction in soybean carryout. The agency also cut its forecast of Argentine production by 257 million bushels, more than expected, while adding nearly 75 million to the crop in Brazil. Overall world carryout for the 2017 marketing year fell 132 million bushels, again, a bigger reduction than the trade was looking for.
Corn traded both sides of unchanged after USDA raised carryout by 55 million bushels to2.182 billion, due to weaker feed and industrial usage suggested by the March 29 stocks report. That was close to trade estimates. The agency cut its forecast of production in both Brazil and Argentina by a total of 217 million bushels, helping tighten world carryout slightly. Acreage fell in both countries with Argentine yields slashed by drought.
The agency put U.S. wheat carryout at 1.064 billion bushels, up 30 million due to lower feed and residual usage. World ending stocks went up 86 million bushels, more than the trade expected. Wheat prices were under modest pressure before the report but tried to frim after initial selling dried up.
Markets generally were buoyed by calming trade tensions that gave a boost to stock markets around the world today. Commodities also rallied, with crude oil moving back above $65.
While the trade issue won’t disappear completely, it may not dominate prices unless headline news turns sour.
Corn Report from India
Indian corn harvest for Rabi will be late, another 2 weeks before the new corn is large quantities could be seen in the market. In the interim, the price has gone up, in Gulabbagh by over 9% in last one month. Against last week, prices are down slightly and are at Rs.13000/MT. Prices in Erode, (South) have also gone up by over 4% in last one month and currently close to Rs.13900/MT. Against 1st week of April, prices are up by 2.5%
Higher demand of DDGS in the domestic as well as foreign markets has led to higher prices, which are indicated at $245/MT FOB US Gulf, up 10% in one month. Prices of DGGS to Vietnam are indicated at $251/MT, China $251/MT, Chittagong $283/MT and Myanmar $279/MT. Other co-product price, CGM prices have been more or less stable at $620/MT (FOB US gulf) for the last couple of weeks.
Source: USDA, Informa &Techproindia