Soybeans, often referred to as the "miracle crop," hold a prominent place in the global agricultural landscape due to their widespread use and versatile applications. In this article, we delve into the latest updates on the various soybean futures, including soybean oil futures and soybean meal futures.
Trading Soybean Futures and Options
Traders can trade soybean futures and options from both the Dalian Commodity Exchange (DCE China) and Chicago Board of Trade (CBOT) through Orient Futures International Singapore. To trade Dalian Soybean Futures contracts (Soybean No.1 and 2), International traders would require an overseas intermediary like Orient Futures Singapore, through either the QFI China Scheme or the Internationalized products.
Please note that Dalian Commodity Exchange trading hours are as follows: 9:00AM - 11:30AM and 1:30PM - 3:00PM Beijing Time. Click to find out more on DCE trading hours, CBOT trading hours and also DCE and CBOT Soybean Contract Specifications.
Soybean Supply and Demand
This Soybean market news is based on Orient Research Weekly Report on Agricultural Products dated 20230924 and other sited sources.
China
Frequent auctions for soybeans have significantly increased the overall soybeans supply available in the market.
Demand for soybeans has been generally weak in China, with many traders adopting a wait-and-see approach. The indirect impact of declining soybean import prices has contributed to the bearish sentiment. Experts expect the soybean No. 1 Futures contract to weaken and become volatile in the near future. This is especially true when new supplies of China soybean production become widely accessible.
Soybean oil inventories have increased but remain relatively low compared to previous years. This leads to variations in estimated soybean production volumes for the next three months. Improved domestic soybean crushing margins may support higher imports from November to January, but lower arrivals in September and October could keep soybean oil inventories at lower levels. Overall, the soybean oil market is expected to remain weakly volatile.
United States
The US experienced worsening drought in key soybean-producing regions, with soybean harvesting at 5%. Net additions to US soybean export orders for the 23/24 crop year marks a significant two-week decline.
Brazil continued to have a substantial impact on US exports, averaging 350,000 tons per day in early September, compared to 190,000 tons per day in the same period last year. Brazil still has around 15 million tons of soybeans available for export between September and December, and planting progress in Brazil, especially in Parana, has been rapid. However, dry conditions in Mato Grosso may hinder progress.
Despite these factors, tight US soybean supplies and South American weather uncertainties are likely to limit the decline in CBOT soybean futures prices, keeping the market weakly volatile. The focus remains on South American weather patterns and their impact on US inland waterways and the Panama Canal.
Soybean Future Price
According to Trading Economics, Soybean prices have experienced a decline, falling to levels below $12.8 per bushel. This marks their lowest point in 16 weeks. This drop follows the release of data indicating that soybean supply in the United States stood at 268 million bushels as of September 1. Although this figure was above market expectations of 242 million bushels, it's worth noting that it represents the lowest level for this time of year since 2021.
One of the contributing factors to this situation is the strong demand from crushers, which has significantly reduced soybean supplies. On-farm stocks increased by 14 percent year-on-year to 72.0 million bushels while off-farm stocks decreased by 13 percent to 756 million bushels.
The June to August 2023 indicated disappearance for soybeans reached 2.75 billion bushels, down from 2.97 billion in the previous year. The ongoing US soybean harvest and the availability of ample supplies from Brazil further influence the current market supply dynamics and price.
Start Trading With Orient Futures Singapore
Overseas Intermediary of Shanghai International Energy Exchange (INE), Dalian Commodity Exchange (DCE), and Zhengzhou Commodity Exchange (ZCE), when foreign clients participate in internationalised futures contracts in these Chinese markets with us, they have direct access to trading, clearing, and settlement. Our parent company, Shanghai Orient Futures, is the largest broker in terms of aggregated volume across the five regulated exchanges in China.
Orient Futures Singapore also currently holds memberships at the Singapore Exchange (SGX), Asia Pacific Exchange (APEX), and ICE Futures Singapore (ICE SG). Starting August 2023, corporate clients can also gain access to the B3 Exchange through us.
We provide bespoke services to our professional clients, tailored to their corporate and individual needs. Our team will be there for you 24 hours on trading days to provide a one-stop portal for all your trades, with simple processes and an intuitive user interface that has low or near-to-zero latency.
