Futures Close Report: 4th October 2017

Soybeans – rains delayed the harvest in parts of the Midwest United States and dry weather slowed the pace of planting in Brazil, underpinning prices.

The flow of US Soybeans into Chinese markets has been disrupted by the recent Hurricanes – trade sources estimate that the shipment programs are running up to two weeks behind schedule with ships queuing to load in the Mississippi delta.  Normal waiting times at this time of year can be up to 5 days but recent vessels have been waiting up to 12 days.  Delays are mainly down to poor quality soybeans from the early harvest – these are not meeting Chinese import quality specifications.  Disruptions in supply to the world’s largest imported could well have some price impact should China seek alternate supply’s to plug any holes.

Brazil forecaster, Abiove, estimated the nation’s soybean output at 108.5 million tonnes in the 2017/18 season, down from 113.8 million tonnes in the prior crop cycle.