CBOT has a sharp price gains, concerns about the tightening of global supply
Corn
The price of CBOT corn at the beginning of this week fell sharply following the downward trend of world crude oil prices. Closing the last session 10/5, the price of CBOT corn turned back to 1.3 USD/ton, after having dropped sharply in the previous 2 sessions.
For Pakistani corn, CFR import offers to Vietnam tend to cool down recently. Imported cargo ships are expected to continue to arrive a lot in the next month and a half, which is a factor that puts pressure on transaction prices, especially when the demand for feed mills is at a low level.
In the last 1-2 days, the USD/VND exchange rate has tended to increase, currently hovering around 1 USD = 23,190 VND, 100 VND higher than at the beginning of the week. An increase in the exchange rate may slow down the decline in the price of imported corn, as the selling price of small and medium-sized enterprises is now quite close to the cost of imported corn.
Wheat
For wheat, the price of CBOT closed the last session without much change. Near the end of the week, at the end of the session (May 12), wheat price increased sharply by 24,1 USD/ton due to market concerns about the tightening of global supply.
According to news from Sovecon, the price of Russian wheat exports increased slightly last week as trade activity declined. The price of wheat protein 12.5% shipment May from Black Sea ports increased by 5 USD/ton to around 385-395 USD/ton at the end of last week.
Along with that, USDA also surprised the market, when it lowered the estimate of US hard red winter wheat production this year to 16 million tons, which was also an important factor affecting the price of CBOT session 12/5. Forecasts for this year’s US wheat production are of particular interest to the market in the context of supply disruptions from the Black Sea region.
Soybean Meal
The price of CBOT soybean meal ended the last session with a loss of 4 USD/ton and the 4th consecutive decrease, losing a total of 24.3 USD/ton compared to 05/05.
The source of imported goods is abundant while the demand for buying is moderate and continues to put downward pressure on the price of soybean meal for short-term delivery in the Vietnamese market.
Abundant supply pressure from the ongoing harvest in Argentina (the world’s largest soybean meal producer) was an important factor driving down world soybean meal prices during this period.
The market is concerned that China’s import demand will decrease on a large scale of agricultural products such as corn, soybean seeds, … when the country applies strict control measures for a long time in many places to disease prevention.
