International Soy market developments - June 2019

To improve our cooperation with our valued partners, we hereby inform you about the latest market developments. In this overview, especially suited for our partners specialized in the use of natural sources, we will take a deep dive in today’s international Soybean market.

Heatwave impacts Indian crop

India is suffering from various heatwaves in many parts of the country. The heatwaves are expected to continue in our main Soy producing regions Vidarbh and Madhya Pradesh. This can have a negative impact on our crop.

Indian Soybean crop size, demand and prices

The National Collateral Management Services Limited (NCML) expects Soybean crop size in the range of 10 to 11 million metric tonnes for this year. This is 20-27% lower from the estimated 13.7 million metric tonnes. The local soybean prices are likely to trade in steady to firm tone in the coming days.

Global Soybean production

As indicated by the International Grain Council (IGC) report, the global Soybean production is expected to decline at 358 million tonnes in 2019/20 against 363 million tonnes in 2018/19. It expects global consumption at 359 million tonnes for 2019/20.

Increasing EU demand and import

New demand from Europe and a slowdown in crushing has impacted the upward trend for Lecithin in recent weeks. Furthermore the EU imported 9% more soybean at 13.4 million tonnes of the season 2018/19 to date against last year.

U.S. Soybean crush decline

According to the National Oilseed Processors Association (NOPA), the U.S. soybean crush for April declined by 6% to 159.99 million bushels from 170.01 million bushels in March 2019.

Ukraine sunflower oil and seed production

The sunflower oil production of Ukraine is likely to stand at 6.4 million tonnes supported by higher sunflower seed harvesting. The Ukraine may harvest 14.9 million tonnes of sunflower seed in 2019 which is very close to the 14.96 million tonnes of 2018.

Arthur de Raad, Sales Manager of Castor International, about these developments:

"For Castor International, the market developments provide a positive outlook. In particular, the Indian market offers growth potential for selling Soya lecithin. In the coming period, we will focus on being more present in the food and feed industry. Lecithin’s (both Soya and Sunflower) can play an important role in this.”