Futures contracts of all components of the edible oil basket on domestic exchanges rebounded.

Shrugging off previous session’s losses, soybean contracts on National Commodity and Derivatives Exchange traded higher due to reports of drops in yield this year following weak monsoon rains in key growing areas.

Some soybean-growing regions in Maharashtra’s Vidarbha and Marathwada are yet to start sowing, which is already delayed by five to six weeks, due to a lack of or negligible rains.

Gains in key soybean contracts on Chicago Board of Trade also supported the prices on the NCDEX, traders said. Lower-than-expected soybean crop condition in the US, the top grower, jacked up prices on the US exchange.

 

Soybean futures closed with 2 to 2 1/2 cent losses in the front months on Tuesday. August soybean meal was down $2/ton, with soy oil 28 points higher.

The 5-day QPF shows dry weather for most of the Midwest over the next several days. The 6-10 day outlook indicates above normal chances for precip in most of the Corn Belt, up into the Dakotas.

Monday afternoon’s NASS report indicated that none of the 18 reported states were above normal progress for either stage. For conditions by state, the most notable jump was for IL (+10), with IA (+1) and NE (+4) both higher as well.

Ratings in IN (-4), ND and OH (-7), and SD (-6) were all lower. More information about this year’s MFP payment will be released this week according to a statement from USDA secretary Perdue.