Feedstuff Market reports - August 28, 2003 FoodMarketExchange.com

Overview

Ontario soybean growers have been facing the expansion of aphid. US .has urged China to drop unwarranted restrictions on soybeans. CBOT soybean price were weaker at the beginning of the week.

Supply

Analysts at Professional Farmers of America or Pro Farmer estimated that US soybean crop of 2003-04 would reach 2.735 billion bushels with 37.7 bushels per acre, which was much lower than the USDA's estimated in August. 12 crop production report estimated of 2.862 billion bushels of production and an average yield of 39.4 bushel per acre.

Crop progress from USDA reported on Monday noted that 56 percent of US soybean crop is now in good to excellent condition, compared to 62 percent in the previous week, thanks to the dry condition during critical pod filling stages. Soybeans about 95 percent are blooming, compared with 97 percent in the previous year and 97 percent on average. 79 percent of the soybean crop is setting pods, compared to 83 percent last year and 84 percent on average.

Leading to the charge downward in crop deterioration was Iowa, which fell 16 points to 43 percent good to excellent. Illinois also suffered a major loss, falling 12 points to 58 percent good to excellent. Minnesota slipped to 10 points to 40 percent and Wisconsin fell hard by 20 points to 37 percent good to excellent. Indiana also dropped 4 points to 57 percent good to excellent.

Global Weather Service forecasted that there would be rainfall in the middle of the week in the northern regions of the country which bringing more relief to some areas such as southern Minnesota. And more widespread rainfall would continue to the end of the week. Moreover, hot and dry weather is expected in the western areas

Latest Canadian's soybean statistic report on Friday, which is based on a producer survey, revealed that soybean production in Ontario is estimated that at 2.150 million tons and an average yield is 39.5 bushels per acre. The Ontario Soybean Growers is presently estimating average soybean yield to be 37 bushels per acre.

Ontario Ministry of Agriculture and Food (OMAF) reported that there are a few soybean fields in Southwestern Ontario that are reaching soybean aphid threshold level. OMAF is saying that soybean aphids have now been reported in fields across the province, so producers need to get out and scout their individual fields.

There is no report from American Soybean Association (ASA) during this week.

Demand

The news reported that the US Agriculture Secretary Ann Veneman made the comment at the meeting with Du Qinglin, Chinese Agriculture Minister, on Monday that China should end unwarranted restrictions on US soybeans, saying the dispute is holding up normal trade relations. The Agriculture Department said in a statement that the two discuss US soybeans sales to China and the recent disruptions due to unjustified phytosanitary restrictions.

China is the largest export destination for US soybeans and sales have surpassed 1.7 billion dollars thus far in the year. However, now China has not placed any new import curbs on foreign soybeans but wants countries to label their genetically modified shipments.

Prices

Soybean futures at the CBOT were weaker at the beginning of the week. November soybeans were up 1 1/2 cents to $5.87 3/4 a bushel, and September beans were also up 1 1/2 cent at $5.87 3/4 a bushel. December soymeal was up $0.04 to $184.90 a short ton and December soyoil was down 4 points to 19.96 cent a pound.

On Wednesday, soybean futures at the CBOT were stronger. November soybeans were up 4 1/4 cents at 5.80 3/4 a bushel and September beans were up 4 1/4 cent at $5.81 a bushel. Dec soymeal was up $0.50 to S183.70 a short ton and December soyoil was up 19 points at 20.01 cent a pound.