US crop plantings have been positive so far, with plantings progressing in 11 of the 18 key growing states according to the USDA’s Crop Progress Report, released on 17th April. Soybeans planted as of 16th April reached 4%, three percentage points (p.p) higher than the five-year average (2018-2022) planted during the same period. However, market sources stated that progress this week has been slowed down by cold temperatures and rain spells. While the progress in the US soybean planting has pressured the CBOT soybean futures price (May-23), after it settled higher for two consecutive days on Tuesday, 18th April, driven by the National Oilseed Processors Association (NOPA) Crush Report, forecast of rain over the coming week will be a watch-point as this has raised concerns about delays to planting.
The CBOT soybean futures price settled at USc 1,497.4/ 60 lbs bushel on 20th April, USc 9/60 lbs bushel lower than the previous day’s settlement after climbing due to higher March crushing figures reported by NOPA in its latest report. According to NOPA’s estimates, soybean crushing reached 185.81 million bushels in March, up 12.3% from February’s crushing figure. According to market sources, the reported increase in bean crushing indicates a likely rise in export demand. Demand direction from China will also remain a watch-point, as the fast-progressing harvest of the record soybean crop in Brazil could lead buyers to turn back to Brazil, after delays in harvesting in the previous months caused many buyers, including China, to turn to the US for supply.
