The impact of downward risks on the global steel industry is best reflected in crude steel production data just released by WSA. Prices are up 9.8 percent this week, on course for the biggest advance since the week ended Oct. The corn market did trade higher and that likely helped rescue the beans to some degree. But by late in the session, that bullishness wore off and prices closed little change during the week. MUMBAI (Commodity Online): US soybean futures finish little changed as market participants face uncertain demand.
The USDA said private exporters struck deals to sell 110,000 tons of soybeans to China, the world’s top importer of the oilseed, for delivery after Aug. China may now be returning its business to the US, says Alan Bugler of Bugler Marketing & Management. The negative closing of the CBOT due to the strengthening dollar index prompted the fall in the prices in the Indian market also.
The U.S. Department of Agriculture said in its weekly crop-progress report published late Monday that approximately 22% of U.S. soybean crops were planted as of May 15, compared with 37% planted during the same week a year earlier and lower than the five-year average of 31% for this time of year. The decline in the weekly exports sales to china due to lack of demand resulted in the fall of the prices.
Barge-grain movement on the nation’s river system fell 45 percent to 258,350 metric tons from a week earlier, the USDA said today in a report Shipments fell 50 percent from a year earlier because of flooding and shipping restrictions on parts of the Ohio and Mississippi rivers, the agency said. The bearish trend in the soybean futures market was extended for third day on Wednesday on extended selling pressure. Due to absence of fresh soy meal export demand from South East Asian countries, traders and crushers were away from active buying of beans from the spot market.
Lack of fresh soy meal export enquiries from South East Asian countries is likely to exert pressure on the market. Discouraging crush margin in local market is resulting to poor crushing activity. The Chicago soybean futures dropped sharply on Tuesday, hit by the heavy sell-off in energy market and newly-gained strength in greenback. A trader mentioned that a combination of bearish outside market forces, including the mammoth silver’s sell-off, weakness in energy and strong rally in U.S. dollar, all helped to add to the negative tone in the grain market. Poor demand for the produce in local markets amid thin supplies had a bearish impact on the futures market.