06 July 07:00 AM
Futures news, soy. On July 05 soybean quotations regained the 3-month high mostly due to drought in the USA, which worsens the condition of future crop. As of July 02, the condition of crop worsened again, as shown in Crop Progress report. 33% and 39% of crop is in satisfactory and good condition accordingly, versus 32% and 45% one week ago. Last year these figures amounted to 26% and 53%. Such state of things will most probably lead to crop shortage and, consequently, US production, which can already be observed on soybean cost. This will become clearer on July 11 when USDA monthly report is issued.
Speaking about export sales, they will remain rather high in comparison to two previous seasons. This is already supported by prices.
As of June 01, US soybean stocks amount to 18 mmt, which is 11% more than last year.
Consequently, according to the Analytics Team of Commodity Trading Department, price has tested rather hard psychological level 1500 and regained the 3-month and the 3-year high. It has opened with a gap and is not likely to change drastically until the period of rains in the USA.
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