Tuesday 24 July 2012

Drought to push global soybean prices further

23 July, 2012
NEW YORK (Commodity Online):
With the persisting Drought like conditions in U.S and lower rainfalls in India, the price of soybean has surged tremendously in the global as well as in domestic market.

For the the month of July till date (21st July), In India's National Commodity and Derivatives Exchange (NCDEX), for August delivery, rose 20.82% to Rs 5064.50 per qtl. And in Chicago Board of Trade (CBOT), the commodity touched all time high on Friday.

The price of soybean in U.S surged 26% during the past five months.

According to United States Department of Agriculture (USDA), around 34% of soybean crop is rated ‘good’ to ‘excellent’ last week, compared to 64% in the same week a year earlier.

Presently, U.S. soybean production is expected at 3.05 billion bushels in the current marketing year, nearly 5% lower than USDA prediction in June.

With the drop in production in major South American growers Brazil and Argentina, due to crop damage, the global soybean supplies are already on the decline.

Meanwhile, the demand for the commodity has surged higher pushing the prices higher.

For August delivery, soybean in CBOT, traded at 1733 4/8 cents per bushel and in NCDEX, traded at Rs 4900 per qtl on 23st July.

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