GRAIN MARKET REVIEW: OILSEEDS
Improving crop conditions in the first half of August in the United States triggered new declines, although it remains to be seen what impact the heatwave in the US Midwest in late August will have on the soybean crop. On Aug. 21, soybean futures on the Chicago Board of Trade rose to their highest level since July as excessive heat warnings were issued in many of the country’s key production areas. “Technical activity was also influential. Although basis levels were firmer, US Gulf spot export quotations were 8% lower at US$538 fob.” The International Grains Council said that.
Concerning rapeseed, the Council reported that “despite worries surrounding 2023-24 crop prospects in Canada, ICE canola futures declined by 6% (month-on-month) on profit taking, with losses in soybeans a bearish influence, while fob prices (Vancouver) also fell.” In Australia, fob quotations (Kwinana) softened by $31, to $545, the IGC said.
In its Food Price Index, published on Aug. 8, the United Nations Food and Agriculture Organization (FAO) said world vegetable oil prices were up by 12.1% in July compared with June, the first increase after seven months of consecutive declines. “Rising world crude oil quotations also lent support to vegetable oil prices,” the FAO said.
(Link: WorldGrain.Com)
CROP PROGRESS REPORT: WHICH STATE HAS THE BEST SOYBEAN CONDITION? WHICH STATE HAS THE WORST SOYBEAN CONDITION?
Timely rains and limited drought concerns are enabling a largely healthy soybean crop in Arkansas. USDA rated Arkansas soybeans 2% very poor, 5% poor, 20% fair, 51% good, and 22% excellent the week ending Aug. 20, Arkansas currently has the best soybeans in the country. Thanks to largely favorable weather conditions, 99% of Arkansas soybeans have bloomed, up 1% from the week prior and 1% ahead of the five-year average. Last year at this time, soybean blooming was complete. USDA reports 93% of Arkansas soybeans are setting pods, equal to last year at this time, and up 2% from the week prior. One-third of Arkansas soybeans are coloring, surging from 19% the week prior. Last year at this time 18% of the state’s crop was coloring.
Kansas soybean farmers continue to be challenged by drought as August marches on. USDA rated Kansas soybeans 9% very poor, 17% poor, 34% fair, 34% good, and 6% excellent the week ending Aug. 20, a significant decline from the previous week. Kansas currently has the worst soybeans in the country. At 94%, Kansas’ soybean blooming is ahead of the five-year average by 3% and 4% ahead of where it was in 2022. At this time last year, 90% of Kansas soybeans were blooming. As of Aug. 20, Kansas soybeans are setting pods at 76%, a jump from 66% last week.
(Link: agriculture.com)
