InfoAWIT, SINGAPORE – Soybean and corn at Chicago Board of Trade got a little bit increased on Thursday (29/8/2024) after they were pressed for the better weather and rain in Midwest, United States of America. Meanwhile, the grain got more expensive for the third session in a row even though the cheap supply around Black Sea pressed the increasing price.
Soybean contract at Chicago Board of Trade (CBOT) got increased 0,3% to be $9,79-3/4 per bushel at 04:21 GMT, corn did too 0,2% to be $3,91-1/2 per bushel. Grain did increase 0,1% to be $5,42-1/4 per bushel.
But soybean was bearish even though some issues still had something to do with weather in Midwest. “Soybean price could be decreasing and some issues still related to the weather in Midwest,” a trader in Singapore mentioned, as InfoSAWIT quoted from Reuters. "For grain itself, we have cheaper cargo to transport it from Black Sea but the whole supply would be close,” he said.
The concern about hot weather and drought in Midwest influenced the price in the last sessions namely the damage potential of soybean in its development process. Even though the rain fell down in the region, there would be concern if the rain would be enough to help soybean hit its full potential.
In Europe, the intense rain damaged grain harvest in Germany and French even though the cheap exports from the Black Sea would maintain the supply in the world and press the exports from USA. This made the grain competitive in price and the producers from the Black Sea, such as, Russia and Ukraine could offer cheaper price than the producers in USA.
Grain production in Canada could be increasing more than 4 percent, according to Statistics Canada. It could be smaller production, not like the analysts hoped – predicting to be about 35,125 million tons. The official data predicted the total production could be around 34,4 million tons to 32,9 million tons in 2023.
The farmers in Ukraine started planting grain in the cold season for the 2025 harvest that would lay on about. 2000 hectares and 600 hectaers for cold season barley. Last year, the grain planting in cold season in Ukraine started in the early of September.
In India, the government still considered to increase vegetable oil import tax to protect the farmers in the country that were hit by the cheap seed oils, as two officials mentioned.
In commodity trade, the fund of the commodities was recorded as the clean buyers of soyoil and grain oil in the Chicago Board of Trade but they would be the sellers for soyoil, corn oil, and soybean flour contracts on Wednesday, according to the traders. (T2)
