By Joanna Levin THE US soya bean market has been hit by the downturn in world financial markets and the knock-on effect on global commodity prices. Soya bean prices have also been depressed as good weather this season caused analysts to raise their crop estimates.
Many market participants believe the USDA forecast of a 283 billion bushel harvest this year is too conservative. Instead, they predict up to 300 billion bushels will be harvested, particularly if there is another timely rainfall in the southern corn belt.
Rumours of flood damage to the Chinese soya bean crop and grain storage facilities has failed to bolster US prices.
The Chicago September futures contract closed on Wednesday (August 26) at 531.25¢/bushel, down 5.75¢ from the previous day. This was also down from a high of around 550¢ during mid-week trading last week and has plummeted from 662¢/bushel in late June.
Soya oil received some support from higher overseas veg-oil prices but was depressed by news of higher than expected US soya oil stocks at 1.762 billion lbs.
The September soya oil contract closed on August 26th at 23.81¢/lb, down 0.28¢ on the previous day. The soya oil contract had been as high as 30¢/lb in mid-May.