Stock exchange news. The fall of price, observed during last three weeks at the market of soybeans, has stopped. It is connected with the fact that, according to USDA, as of June 26 the sowing has been finished by 97%, which is 1% more than at the same time last year, and 92% of seeds have come up. Consequently, the main price driver has disappeared; namely, problems with sowing or the lack of such.
Future crop’s condition is generally estimated by experts as good. To be more exact, 2% of the crop is in very bad condition, 6% – in bad, 27% – in satisfactory, 54% – in good, and 11% – in excellent condition.
The preliminary results of export sales during the week of June 15-22 amount to 8.732 million bushels or almost 238 thousand tons, which exceeds the results of the previous week two times. This speaks about the increase of interest to the market amid fall of price, which is very up to date for importers.
The analytics of Derivatives Trade Department admit that in the nearest future the price is most likely to remain in the range 13-14 dollars/bushel, for no objective reasons for its fall to be continued are observed. The price can be supported by weather conditions, which can negatively influence the future crop’s condition.
Moreover, this evening the final report of sowing areas and the next report on reserves’ condition will appear. Consequently, increase of areas for soybeans and good reserves will put the price under pressure, whereas decrease of areas and shortage of reserves will serve as support.
